Financial Performance - The consolidated loss for the year increased by approximately 61% compared to the same period in 2021, primarily due to the impact of COVID-19 restrictions in China [6]. - Revenue from external customers for the fiscal year 2022 was HKD 451,115,000, a decrease of about 13% from HKD 515,907,000 in the previous year [10]. - The net loss from other income and expenses for the fiscal year 2022 was HKD 10,854,000, a significant change from a gain of HKD 1,131,000 in the previous fiscal year [11]. - The company reported a loss from continuing operations of HKD 45,384,000 for the year ended December 31, 2022, compared to a loss of HKD 28,124,000 in 2021, representing a 61.5% increase in losses year-over-year [62]. - Total revenue for the year ended December 31, 2022, was HKD 451,115,000, a decrease of 12.5% from HKD 515,907,000 in 2021 [164]. - Gross profit increased to HKD 105,597,000, up 9.5% from HKD 96,544,000 in the previous year [164]. - The company reported a net loss of HKD 45,384,000 for 2022, compared to a net loss of HKD 28,124,000 in 2021, representing a 61.5% increase in losses [164]. - Basic and diluted loss per share was HKD 20.82, compared to HKD 13.78 in 2021, indicating a worsening financial position [164]. - Other comprehensive loss for the year was HKD 3,317,000, compared to a gain of HKD 7,211,000 in the previous year, indicating a negative shift in overall financial performance [166]. Assets and Liabilities - Total assets decreased to HKD 421,950,000 in 2022 from HKD 529,599,000 in 2021, reflecting a decline of 20.3% [63]. - The company's net asset value decreased to HKD 203,435,000 in 2022 from HKD 252,136,000 in 2021, a decline of 19.3% [63]. - Current liabilities were HKD 194,666,000 in 2022, down from HKD 245,837,000 in 2021, indicating a reduction of 20.8% [63]. - The company's cash and cash equivalents increased to HKD 9,327,000 from HKD 2,734,000, showing a significant improvement in liquidity [168]. - The company recognized impairment losses of HKD 34,928,000 under the expected credit loss model, a substantial increase from HKD 6,123,000 in 2021 [164]. - The company reported a significant increase in trade receivables, with a change of HKD 65,774,000 in 2022, compared to a decrease of HKD 96,089,000 in 2021 [176]. Operational Overview - The company did not engage in any significant investments, acquisitions, or disposals during the year [14]. - The company anticipates that infrastructure investment will become a pillar of economic recovery in China, benefiting its business operations [7]. - The company is exploring new business opportunities to expand its scale and drive growth [27]. - The company faces significant risks in the construction materials industry, including rising raw material prices and increased competition [44]. - The main business of the company includes the manufacturing and trading of prestressed high-strength concrete piles and other concrete products [41]. - The company's subsidiaries are primarily engaged in the manufacturing and trading of various concrete products [41]. Governance and Compliance - The board of directors does not recommend the payment of a final dividend for the fiscal year [47]. - The company has not incurred any significant contingent liabilities as of December 31, 2022, and December 31, 2021 [22]. - The company has not reported any significant events after the reporting period [58]. - The company has established an audit committee to oversee financial reporting and risk management [88]. - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring compliance with governance standards [103]. - The company has implemented anti-bribery and anti-corruption policies to guide employee conduct [93]. - The company has adopted a whistleblowing policy to encourage employees and third parties to report misconduct or violations confidentially [128]. - The company is committed to ensuring compliance with disclosure obligations under listing rules and applicable laws, providing equal access to information for all shareholders and potential investors [136]. Future Outlook - The company anticipates a global economic recession in 2023 due to rising inflation and geopolitical tensions, but expects a recovery in the Chinese economy following the lifting of strict COVID-19 measures [25]. - The Chinese government announced an increase in infrastructure investment in Guangdong Province to approximately RMB 840 billion in February 2023 [26]. - The company believes that the Chinese government's policies will positively impact the construction materials industry, benefiting the company [27]. - The International Monetary Fund has recently upgraded its economic forecast for China following the end of the COVID-zero policy [25]. Financial Reporting and Audit - The financial statements for the year ended December 31, 2022, were reviewed by the audit committee and comply with applicable accounting standards [88]. - The independent auditor's report states that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2022 [146]. - The company’s financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, ensuring transparency and compliance with the Companies Ordinance [146]. - The audit report indicates that future events or conditions may cast significant doubt on the group's ability to continue as a going concern [160]. - The auditors evaluated the appropriateness of the accounting policies adopted by management and the reasonableness of accounting estimates and related disclosures [160]. Human Resources - As of December 31, 2022, the company employed approximately 378 full-time staff across management, administration, technical, and production departments in Hong Kong and mainland China [19]. - The remuneration committee reviewed the current remuneration policy and the salary range for four senior management personnel was between HKD 0 and 1,000,000 [112]. - The company secretary, Mr. Luo Jin Cai, completed no less than 15 hours of relevant professional training during the year [106]. - The board encourages continuous professional development for directors to keep them updated on regulatory changes and corporate governance [105].
新威国际(00058) - 2022 - 年度财报