Financial Performance - The company reported audited revenue of approximately HKD 23,306,000 for the year ended December 31, 2022, an increase of about 207% compared to approximately HKD 7,583,000 in the previous year[6]. - The loss attributable to the owners of the company for the year was approximately HKD 51,972,000, an improvement from a loss of approximately HKD 65,923,000 in 2021[6]. - The expected credit loss provision amounted to approximately HKD 13,641,000, down from approximately HKD 35,163,000 in the previous year[6]. - The administrative and operating expenses for the year were approximately HKD 11,838,000, compared to approximately HKD 10,323,000 in the previous year[6]. - The company achieved a revenue increase of 207% in 2022 compared to 2021, despite adverse market conditions[12]. - As of December 31, 2022, the company recognized expected credit loss provisions of approximately HKD 13,641,000 and write-offs of about HKD 26,218,000[12]. - The company has a total asset value of approximately HKD 60,171,000 as of December 31, 2022, down from HKD 82,311,000 in 2021[21]. - Total liabilities increased to approximately HKD 40,726,000 as of December 31, 2022, compared to HKD 34,101,000 in 2021, primarily due to accounts payable and other payables of approximately HKD 9,533,000[22]. - The group's net current assets were approximately HKD 8,035,000 as of December 31, 2022, up from HKD 7,493,000 in 2021[24]. - Cash and bank balances amounted to approximately HKD 26,985,000 as of December 31, 2022, compared to HKD 18,886,000 in 2021[24]. - The group's net asset value decreased to approximately HKD 19,445,000 as of December 31, 2022, down from HKD 48,210,000 in 2021[32]. Operational Challenges - The company faced significant operational challenges due to COVID-19 lockdowns in Shanghai, which halted work and delayed project implementations[8]. - The demand for energy-saving products was negatively impacted, with consumers requesting discounts, which reduced profit margins on new contracts[11]. - Financial difficulties faced by property developers in China since 2021 have posed challenges for the company's energy-saving business, leading to project delays and cancellations of potential new orders[11]. - The company is actively working to secure new orders and restore project timelines as operations gradually resume post-lockdown[11]. Future Outlook - The company anticipates improved business conditions following the easing of COVID-19 restrictions by the Chinese government in December 2022[11]. - The company anticipates improvement in market conditions in the second half of 2023 following the easing of pandemic control measures by the central government[12]. - The company expects the overall occupancy rate of the Suqian Insurance Town project to improve in the second half of 2023[18]. - Management expects improvements in the Chinese and global economies in 2023, despite facing various challenges and uncertainties in the energy-saving industry[46]. Shareholder Actions - The company completed a rights issue on January 16, 2023, issuing a total of 313,998,544 new shares at a subscription price of HKD 0.10 per share[27]. - The net proceeds from the 2023 rights issue are intended for repaying outstanding loans (HKD 17.5 million), funding existing and new energy-saving projects (HKD 8 million), and general working capital[41]. - The total number of issued ordinary shares increased to 627,997,089 as of December 31, 2022, from 523,330,908 in 2021[25]. Environmental Commitment - The company aims to integrate environmental and social considerations into its business objectives[180]. - The company is committed to reducing greenhouse gas emissions and improving waste management[182]. - The board is responsible for overseeing environmental, social, and governance matters and ensuring effective risk management[187]. - The company engages with stakeholders to understand their expectations regarding significant environmental, social, and governance issues[188]. - The company promotes energy-saving and water-saving behaviors as part of its overall environmental management agenda[199]. Governance and Compliance - The company has adopted the corporate governance code and complied with its principles throughout the year, with some deviations noted[129]. - The board consists of six members, including three executive directors and three independent non-executive directors[135]. - The company has established risk management procedures to address all significant risks related to its business[167]. - The Audit Committee is tasked with ensuring the independence and objectivity of external auditors, reviewing their performance and remuneration[156]. - The company has established a clear framework for the roles and responsibilities of its various committees, ensuring compliance with corporate governance standards[158]. Employee and Shareholder Relations - The remuneration policy for directors and top executives is based on performance, qualifications, and market statistics[118]. - The company has not reported any interests held by directors in any competing businesses during the year[109]. - The company has not established any arrangements for directors to benefit from purchasing shares or bonds of the company or any other entity during the year[105]. - The company has not made any charitable donations during the year, consistent with the previous year[75].
信能低碳(00145) - 2022 - 年度财报