Financial Performance - The group's revenue increased from approximately HKD 549,554,000 for the year ended December 31, 2023, to approximately HKD 815,181,000 for the year ended December 31, 2024, representing an increase of about HKD 265,627,000 or 48.3%[13]. - The gross profit and gross profit margin for the year ended December 31, 2024, were approximately HKD 158,150,000 and 19.4%, respectively, compared to approximately HKD 110,022,000 and 20.0% for the year ended December 31, 2023[13]. - The net profit attributable to the company's owners for the year ended December 31, 2024, was approximately HKD 86,171,000, up from approximately HKD 61,479,000 for the year ended December 31, 2023[13]. - Other income for the year ending December 31, 2024, was approximately HKD 1,642,000, an increase of 25.3% from HKD 1,310,000 in 2023, primarily due to government grants from the Construction Industry Innovation and Technology Fund[36]. - The total employee cost, including service costs and administrative expenses, was approximately HKD 306,462,000 for the year ending December 31, 2024, up from approximately HKD 201,096,000 in 2023, reflecting an increase in employee costs during the reporting period[59]. Contract and Project Participation - The group achieved a total contract value and confirmed change orders of approximately HKD 665,707,000 for 19 public sector projects and about HKD 497,000 for two private sector projects during the fiscal year ending December 31, 2024[12]. - The group participated in 51 public sector projects (up from 39 in 2023) and five private sector projects (down from six in 2023), including newly awarded contracts[12]. - The total uncompleted cumulative amount of new contracts confirmed as revenue post-reporting period and carried over from 2024 is approximately HKD 890,067,000[12]. - The group has secured a total contract amount of approximately HKD 665,707,000 for 19 public sector projects and approximately HKD 497,000 for two private sector projects for the year ended December 31, 2024[24]. - Revenue from public sector tunnel construction services rose from approximately HKD 325,178,000 in 2023 to approximately HKD 545,082,000 in 2024, an increase of about HKD 219,904,000 or 67.6%[30]. Shareholder Information and Dividends - The proposed final dividend date is set for June 18, 2025, pending shareholder approval at the annual general meeting[8]. - The group plans to pay a final dividend of HKD 0.04 per share, based on a basic earnings per share of approximately HKD 0.1773, subject to shareholder approval[14]. - The proposed final dividend for the year ending December 31, 2024, is HKD 0.04 per share, down from HKD 0.05 per share in 2023, based on basic earnings per share of approximately HKD 0.1773[45]. - The interim dividend of HKD 0.04 per share was paid on October 31, 2024, resulting in a total dividend of HKD 0.08 per share for the year[144]. Corporate Governance - The company has been adhering to the corporate governance code since its listing date[79]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independent elements in decision-making[91]. - The audit committee held four meetings during the reporting period to review financial statements and monitor internal controls and risk management[100]. - The company has established three committees: audit, remuneration, and nomination, to oversee specific aspects of the group's affairs[95]. - The board has reviewed the effectiveness of the corporate governance policy and will continue to conduct annual reviews[96]. Quality Management and Operations - The group has established a formal quality management system certified to ISO 9001:2015 standards to maintain high service quality for all clients[12]. - The group has a robust internal quality assurance policy that outlines specific procedures and responsibilities for various types of work[12]. - The group primarily provides underground construction services, focusing on tunnel construction and public utility construction, including road and drainage works[10]. - The group aims to focus on expanding its tunnel construction services, which are expected to be a primary growth driver and a sustainable source of revenue[16]. Employee and Workforce Information - Employee costs rose from approximately HKD 188,197,000 in 2023 to approximately HKD 286,864,000 in 2024, an increase of about HKD 98,667,000 or 52.4%[33]. - The group had 588 employees in Hong Kong as of December 31, 2024, down from 662 in 2023, with an increase in the number of skilled workers due to project needs[59]. - The company has established a mandatory provident fund scheme for employees in Hong Kong, with both employees and employers contributing 5% of total income, capped at HKD 1,500 per month[165]. Risk Management and Compliance - The board is responsible for maintaining a sound and effective risk management and internal control system to protect shareholders' interests[136]. - The company has implemented a whistleblowing policy allowing stakeholders to report concerns anonymously to the audit committee[138]. - The company has adopted its own disclosure policy to ensure compliance with GEM listing rules and securities regulations[137]. - The board has reviewed the effectiveness of the risk management and internal control systems during the reporting period and found them to be adequate and effective[137]. Share Repurchase and Incentive Plans - The company repurchased a total of 6,464,000 shares during the reporting period, with a total expenditure of approximately HKD 2,135,420[152]. - The share option plan was approved on May 24, 2024, allowing for the issuance of up to 48,780,800 shares, which is 10% of the total shares issued as of the approval date[181]. - A total of 4,600,000 shares were granted as incentive shares to nine selected employees, with a vesting period of 12 months, set to vest on June 14, 2025[189]. - As of December 31, 2024, the net expense recognized for the share incentive plan amounted to HKD 597,000, compared to zero in 2023[190]. Market Outlook and Future Plans - The group anticipates continued demand for tunnel construction services due to ongoing infrastructure projects in the Northern Metropolis and other major initiatives by the Hong Kong government[15]. - The Hong Kong government is expected to increase its basic engineering expenditure from an average of approximately HKD 90 billion to about HKD 120 billion annually in the coming years[28]. - MTR Corporation plans to invest approximately HKD 100 billion to expand its railway network and develop new communities, which is expected to create more job opportunities during the construction phase[29].
骏杰集团控股(08188) - 2024 - 年度财报