Financial Performance - Total revenue for the year ended December 31, 2025, was MOP 196,670,000, a decrease of 5.5% compared to MOP 208,136,000 in 2024[2] - Gross profit for the same period was MOP 42,964,000, down 13.2% from MOP 49,508,000, resulting in a gross margin of 21.8%, a decline of 2.0 percentage points[2] - Profit attributable to owners of the company decreased by 66.9% to MOP 7,982,000 from MOP 24,099,000 in the previous year[2] - Basic earnings per share fell to MOP 2.0, down 66.7% from MOP 6.0 in 2024[5] - Adjusted profit before tax for 2025 was MOP 8,071,000, down from MOP 23,818,000 in 2024, indicating a significant decrease of about 66.1%[17] - The company reported a total segment performance of MOP 42,452,000 for 2025, compared to MOP 48,723,000 in 2024, reflecting a decline of approximately 12.5%[15] - The cost of services provided for 2025 was MOP 153,706,000, a slight decrease from MOP 158,628,000 in 2024, showing a reduction of about 3.0%[17] - Other income and gains resulted in a net loss of approximately MOP 1.5 million for the year ending December 31, 2025, compared to a net gain of approximately MOP 4.2 million for the year ending December 31, 2024, primarily due to a decrease in provisions for financial and contract assets[35] - Administrative expenses increased by approximately MOP 3.5 million or 12.1% from MOP 28.8 million for the year ending December 31, 2024, to MOP 32.3 million for the year ending December 31, 2025, mainly due to employee incentive bonuses and salary expenses related to active bidding[37] Dividend Proposals - The board proposed a final dividend of HKD 1.46 per share, compared to HKD 2.50 per share in 2024, pending shareholder approval[3] - The company plans to propose a final dividend of MOP 1.50 per share for 2025, totaling MOP 6,000,000, down from MOP 2.58 per share totaling MOP 10,300,000 in 2024[20] - The board proposed a final dividend of HKD 1.46 per share (equivalent to MOP 1.50) for the year ended December 31, 2025, pending shareholder approval[59] Assets and Liabilities - Total assets less current liabilities amounted to MOP 130,166,000, a slight decrease from MOP 132,395,000 in 2024[7] - Non-current assets increased to MOP 108,519,000 from MOP 103,362,000, primarily due to an increase in property, plant, and equipment[7] - Current liabilities rose to MOP 86,284,000 from MOP 84,710,000, with trade payables at MOP 23,069,000[7] - The company reported a net cash and bank balance of MOP 33,986,000, an increase from MOP 24,463,000 in the previous year[7] - Trade receivables decreased to MOP 44,334,000 in 2025 from MOP 58,364,000 in 2024, with a net value of MOP 23,365,000 after impairment[23] - Trade payables increased slightly to MOP 23,069,000 in 2025 from MOP 22,693,000 in 2024, with a retention amount of MOP 5,120,000[26] - As of December 31, 2025, the group's current assets exceeded current liabilities by MOP 21.6 million, compared to MOP 29.0 million as of December 31, 2024[42] - As of December 31, 2025, bank and other borrowings amounted to MOP 38.5 million, an increase from MOP 29.6 million as of December 31, 2024[43] - The group's liquidity ratio decreased to 1.25 as of December 31, 2025, from 1.34 as of December 31, 2024, reflecting the profit situation for the year[44] - The asset-to-equity ratio as of December 31, 2025, was 0.30, slightly up from 0.23 as of December 31, 2024[44] Segment Performance - The company operates through three segments: renovation, construction, and maintenance services, focusing on comprehensive contracting[12] - Revenue from renovation, alteration, and addition works was MOP 182,098,000 in 2025, down from MOP 193,905,000 in 2024, a decrease of approximately 6.0%[16] - The group's gross margin decreased from approximately 23.8% for the year ending December 31, 2024, to about 21.8% for the year ending December 31, 2025, due to a reduction in the gross margin of renovation projects[34] - The gross profit margin for renovation projects dropped to 21.3% in 2025 from 23.8% in 2024, indicating reduced demand in this segment[33] - The company reported a significant decrease in revenue from retail and restaurant clients, which fell by approximately MOP 40 million or 22.9%[32] Employee Costs - The company's employee benefits expenses, excluding directors and key management personnel, increased to MOP 40,092,000 in 2025 from MOP 37,302,000 in 2024, reflecting an increase of approximately 4.8%[17] - The total employee costs for the year ended December 31, 2025, amounted to MOP 46.6 million, an increase from MOP 43.3 million in 2024[57] Risk Management - The group has appointed a team to manage credit risk, including setting credit limits and monitoring overdue debts[53] - The group believes that credit risk is well managed and limited, given that major customers are reputable organizations[54] - The group faced a significant credit risk concentration from its top five customers, with trade receivables and contract assets amounting to MOP 26.8 million, representing approximately 39.4% of total trade receivables and contract assets[54] - The group does not currently have a foreign currency hedging policy but monitors foreign exchange risks and may consider hedging significant risks if necessary[50] - The group has no interest rate hedging policy but manages interest rate risks and may take necessary measures in anticipation of significant risks[51] Corporate Governance - The company has adhered to all applicable provisions of the Corporate Governance Code as of December 31, 2025[63] - The Audit Committee, established on January 18, 2017, consists of three independent non-executive directors and has reviewed the financial data for the year ending December 31, 2025[65] - The company’s auditor, Tianzhi Hong Kong CPA Limited, has verified the financial statements for the year ending December 31, 2025, but did not issue any assurance opinion on the preliminary announcement[66] - The annual report for the year ending December 31, 2025, will be published on the Hong Kong Stock Exchange and the company's website[67] - The company plans to amend its Articles of Association to allow for hybrid and electronic meetings, electronic voting, and to comply with updated market standards[69] - The proposed amendments to the Articles of Association will require shareholder approval at the annual general meeting scheduled for June 23, 2026[70] Market Conditions - The Macau gaming industry and inbound tourist numbers have met government expectations, indicating a recovery to pre-pandemic levels[58] - The total value of new renovation projects awarded in 2025 was approximately MOP 259.9 million, up from MOP 196.3 million in 2024[30] - The company has not repurchased, sold, or redeemed any of its listed securities during the year ended December 31, 2025[62]
黎氏企业(02266) - 2025 - 年度业绩