Financial Performance - The Group's revenue for the year ended December 31, 2021, was approximately HK$798,108,000, representing an increase of approximately 17.3% compared to HK$680,212,000 in 2020[14]. - The net profit for the year ended December 31, 2021, was approximately HK$12,597,000, a decrease of approximately 30.2% from HK$18,049,000 in 2020[14]. - Excluding one-off and non-recurring items, the adjusted profit attributable to owners for 2021 would be approximately HK$12,033,000, reflecting an increase of approximately 17.7% compared to the adjusted figure for 2020[14]. - The gross profit for the year ended December 31, 2021, was approximately HK$102,298,000, with a gross profit margin of approximately 12.8%, compared to HK$93,197,000 and 13.7% in 2020[29]. - Other income decreased significantly by approximately 96.0%, from approximately HK$15,797,000 in 2020 to approximately HK$628,000 in 2021[31]. - Administrative expenses increased by approximately 11.3%, from approximately HK$68,792,000 in 2020 to approximately HK$76,547,000 in 2021[33]. - Finance costs decreased by approximately 27.4%, from approximately HK$14,647,000 in 2020 to approximately HK$10,638,000 in 2021[45]. - Profit attributable to owners of the Company for the year ended December 31, 2021, was approximately HK$12,597,000, representing a decrease of approximately 30.2% from HK$18,049,000 in 2020[46]. Project and Contract Information - The Group had a total of 43 fitting-out projects on hand as of December 31, 2021, with an aggregate total contract sum of approximately HK$3,221 million[56]. - Among the projects on hand, 25 projects had a total contract sum of approximately HK$2,865 million, an increase from 23 projects amounting to approximately HK$2,597 million in 2020[56]. - As of December 31, 2021, the Group had a total of 43 renovation projects with a total contract value of approximately HK$3,221 million[59]. - Among these, 25 projects had a contract value of approximately HK$50 million or more, totaling approximately HK$2,865 million, an increase from 23 projects valued at approximately HK$2,597 million as of December 31, 2020[59]. Debt and Financial Ratios - The Group's total debt, including bank borrowings and lease liabilities, was approximately HK$272,185,000 as of December 31, 2021, compared to approximately HK$235,276,000 as of December 31, 2020[65]. - The gearing ratio of the Group was approximately 57.4% as of December 31, 2021, compared to approximately 56.4% as of December 31, 2020[72]. - The current ratio of the Group remained stable at approximately 1.2 as of December 31, 2021, consistent with the previous year[72]. Technology and Business Strategy - The Group is leveraging first-mover advantages in technologies such as virtual reality, digital design services, and three-dimensional laser scanning to drive business growth and diversification[22]. - The Group aims to realize and commercialize its existing and future technologies to create new opportunities and enhance value[22]. - The Group is focusing on diversifying its technology and solutions, including virtual reality technology and digital design services, to create new opportunities and enhance business growth[28]. - The Group intends to commercialize its existing technologies and technical solutions to create new opportunities and enhance cost savings[64]. - The Group has successfully launched certain technologies and aims to solidify their development for industry participants and end users[66]. Employee and Management Information - As of December 31, 2021, the Group employed a total of 264 employees, an increase from 254 employees in 2020[81]. - Employee benefit expenses, including Directors' emoluments, amounted to approximately HK$109,865,000 for the year ended December 31, 2021, compared to approximately HK$99,302,000 in 2020, representing an increase of about 10%[86][91]. - Contributions to the defined contribution retirement scheme for the year ended December 31, 2021, were approximately HK$3,558,000, up from approximately HK$3,467,000 in 2020[83][85]. Corporate Governance - The Board is responsible for corporate policy formulation, business strategic planning, risk management, and significant operational and financial matters[113]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance by all Directors for the year ended December 31, 2021[114]. - The Board comprises seven members, including three executive Directors, one non-executive Director, and three independent non-executive Directors[122]. - Each executive Director has a service contract for a term of two or three years, while non-executive Directors have a three-year appointment[125]. - The Board has established various committees, including the Remuneration Committee, Nomination Committee, and Audit Committee, to delegate specific responsibilities[118]. - The Company provides appropriate insurance cover for Directors' and officers' liabilities arising from corporate activities[121]. - The Board continuously reviews and improves corporate governance practices to create long-term value for shareholders[114]. - Independent non-executive Directors provide independent professional judgments on the Group's development and risk management[123]. - The Company ensures that all Directors have access to Board papers and can seek independent professional advice at the Company's expense[119]. - The Board is committed to maintaining high levels of corporate governance and transparency in management practices[114]. - The Board chairman and independent non-executive Directors met at least once without the presence of other executive Directors for the year ended December 31, 2021[193]. - Regular Board meetings are held at least four times annually, with additional meetings as deemed appropriate by the Board[197]. - Meeting papers are sent to Directors at least 3 days before meetings to keep them informed of the Group's latest developments and financial position[199]. Future Outlook - The fifth wave of COVID-19 is expected to impact the overall economy of Hong Kong in the short term, affecting the Group's future prospects[57]. - The Group will adopt a cautious approach to ensure corporate sustainability in 2022 and closely monitor working capital management[65]. IPO and Capital Management - The net proceeds raised from the IPO were approximately HK$79.4 million, with HK$59.8 million utilized by December 31, 2021, leaving HK$19.6 million unutilized[87][90]. - The Group did not have any significant investments, material acquisitions, or disposals for the year ended December 31, 2021[95][100]. - There were no significant capital commitments as of December 31, 2021[97][102]. - The Group did not anticipate any changes to the plan regarding the use of IPO proceeds as of the date of the annual report[88][92]. Risk Management - The Group closely monitors its foreign currency exposure and has not employed any financial instruments for hedging purposes as of December 31, 2021[80][84].
德合集团(00368) - 2021 - 年度财报