Financial Performance - The company reported a significant net loss of HKD 97,746,000 for the year 2022, compared to a loss of HKD 59,231,000 in 2021, marking an increase in losses [10]. - The group's revenue decreased by 48.7% or HKD 156,216,000 to HKD 164,305,000, with contributions from New Zealand and Suriname divisions at HKD 132,777,000 and HKD 31,528,000 respectively [21]. - The company's revenue for the fiscal year 2022 was HKD 164,305,000, a decrease of 48.7% compared to HKD 320,521,000 in 2021 [183]. - The annual loss for 2022 was HKD 97,746,000, compared to a loss of HKD 59,231,000 in 2021, indicating a worsening financial performance [183]. - The equity attributable to the company's owners showed a loss of HKD 68,152,000 in 2022, worsening from a loss of HKD 36,938,000 in 2021 [183]. - The group's gross loss for the year was HKD 47,972,000, compared to a gross profit of HKD 27,677,000 in the previous year, with the New Zealand division recording a gross loss of HKD 9,402,000 [23]. - The gross loss margin for the year was 29.2%, significantly down from a gross profit margin of 8.6% in the previous year [26]. - The group's EBITDA before interest, tax, depreciation, and amortization dropped by 90.8% to HKD 7,148,000, down from HKD 77,473,000 in the previous year [42]. Revenue and Sales - Revenue from the New Zealand division decreased by 53.2%, primarily due to a 19.4% drop in average export sales prices calculated at offshore prices [10]. - Sales volume in New Zealand fell to 192,000 cubic meters, which is 56.6% lower than the previous year's sales [10]. - In Suriname, revenue decreased by 14.2%, reflecting a slight decline in sales volume despite strong demand for tropical hardwood products [11]. - The New Zealand division's revenue fell by 53.2% or HKD 150,981,000 due to a weak Chinese real estate market, leading to a 19.4% drop in average selling prices and a 43.4% decrease in sales volume [21]. - Sales from the top five customers accounted for 76.0% of total revenue, with the largest customer contributing 64.4% [196]. Operational Efficiency and Cost Management - The company is focused on improving operational efficiency and reducing costs in Suriname through outsourcing, while maintaining stable revenue [14]. - The adjusted EBITDA loss for the Suriname division decreased by 28.9% to HKD 8,913,000 [12]. - Other income decreased by 13.0% or HKD 198,000, primarily due to the repayment of financing lease receivables, partially offset by a one-off COVID-19 related subsidy from the Hong Kong government [28]. - The company has reported a decrease in operational costs by J%, enhancing overall profitability [64]. Investments and Future Plans - The company plans to explore and invest in carbon farming opportunities in New Zealand, aiming to create sustainable revenue sources and contribute to climate change mitigation [14]. - The group has expanded its deep processing facilities in Paramaribo, Suriname, to convert rough-cut timber into higher-value planed timber, with stable production expected in 2023 [51]. - Capital expenditures for investments in properties, plants, and equipment amounted to approximately HKD 9,298,000 for the year [54]. Governance and Board Structure - The board consists of eight members, including one executive director and seven non-executive directors, ensuring a strong independent element in decision-making [90]. - The company’s independent non-executive directors have confirmed their independence in accordance with listing rules [91]. - The board comprises one executive director, four non-executive directors, and three independent non-executive directors, with independent directors making up 37.5% of the board, exceeding the requirement of one-third [109]. - The company has established appropriate liability insurance for directors and senior officers in response to legal proceedings [92]. - The board will consider various factors, including actual and expected business operations, financial performance, and liquidity when deciding on dividend payments [192]. Environmental and Social Responsibility - The company has integrated sustainable development principles into its core business strategy, focusing on protecting forests and creating long-term economic value for shareholders [87]. - The management closely monitors greenhouse gas emissions and energy consumption, ensuring compliance with environmental regulations in operational areas [89]. - The company has implemented a reforestation policy, ensuring that land is replanted within twelve months after logging [89]. - The company actively participates in promoting green living and supports disadvantaged communities through donations and knowledge sharing [89]. Risk Management and Internal Control - The company has adopted an anti-corruption policy and encourages reporting of misconduct without fear of retaliation, reinforcing the effectiveness of its internal control and risk management systems [152]. - The audit committee reviewed the internal control and risk management reports annually and considers them when recommending the approval of the company's interim and annual results [152]. - The company's risk management and internal control systems are deemed effective, with sufficient qualified personnel in the accounting and financial reporting team [152]. Shareholder Communication - The company has adopted a shareholder communication policy to ensure ongoing dialogue with shareholders and the investment community [168]. - Shareholders holding at least 10% of the voting shares can request the company to convene a special general meeting [158]. - The company allows shareholders to submit written inquiries to the board via mail, fax, or email [164].
绿心集团(00094) - 2022 - 年度财报