Financial Performance - The Group's revenue for the year ended December 31, 2022, was approximately HK$819,302,000, compared to approximately HK$798,108,000 for 2021, indicating stability [10]. - The net profit for the year ended December 31, 2022, was approximately HK$28,065,000, representing an increase of approximately 122.8% from HK$12,597,000 in 2021 [10]. - Excluding the COVID-19 related subsidy of approximately HK$12,178,000, the adjusted net profit for 2022 would be approximately HK$15,887,000, reflecting a 32.0% increase compared to the adjusted profit for 2021 [10]. - The gross profit for 2022 was approximately HK$114,023,000, with a gross profit margin of approximately 13.9%, compared to HK$102,298,000 and 12.8% in 2021, respectively [23]. - Other income for 2022 was approximately HK$12,405,000, a significant increase of approximately 1,875.3% from approximately HK$628,000 in 2021, primarily due to government subsidies [24]. - Profit and total comprehensive income attributable to owners of the Company for the year ended December 31, 2022, was approximately HK$28,065,000, representing an increase of approximately 122.8% from approximately HK$12,597,000 in 2021 [36]. - Excluding the exceptional item under COVID-19, the adjusted profit for 2022 would be approximately HK$15,887,000, reflecting an increase of approximately 32.0% compared to the adjusted figure for 2021 [37]. Expenses and Costs - Administrative expenses remained stable at approximately HK$74,602,000 for 2022, compared to approximately HK$76,547,000 in 2021 [26]. - Finance costs increased by approximately 54.9%, amounting to approximately HK$16,473,000 in 2022, up from approximately HK$10,638,000 in 2021 [27]. - Employee benefit expenses, including Directors' emoluments, amounted to approximately HK$116,827,000 for the year ended December 31, 2022, compared to approximately HK$109,865,000 in 2021 [71]. - Contributions to the defined contribution retirement scheme charged to the Group's consolidated statement of comprehensive income during the year ended December 31, 2022, were approximately HK$3,821,000, up from approximately HK$3,558,000 in 2021 [70]. Debt and Financial Position - Total debts of the Group, including bank borrowings and lease liabilities, were approximately HK$413,396,000 as of December 31, 2022, compared to approximately HK$272,185,000 in 2021 [50][53]. - The Group's gearing ratio as of December 31, 2022, was approximately 66.8%, an increase from approximately 57.4% as of December 31, 2021 [63]. - The current ratio of the Group remained stable at approximately 1.2 as of December 31, 2022, consistent with the previous year [63]. Business Strategy and Future Prospects - The Group successfully launched technologies and technical solutions, including virtual reality technology and digital design services, to diversify its business [12]. - The Group aims to capitalize on opportunities arising from its new technologies to enhance value and expand its market presence [12]. - The Group plans to integrate technologies and big data into home design and fitting-out projects to create a one-stop home furnishings solution aimed at cost savings and efficiency improvements [48]. - The Group expects stable long-term business prospects in the fitting-out industry in Hong Kong, supported by government initiatives to develop land resources to meet housing demand [47]. - The Group will adopt a cautious approach to ensure corporate sustainability in 2023, closely monitoring working capital management and potential commercialization of its technologies [49]. Corporate Governance - The Board is committed to achieving high standards of corporate governance and maintaining transparent management practices [90]. - The Company complied with all applicable code provisions set out in the Corporate Governance Code for the year ended December 31, 2022 [91]. - The Board currently comprises six members, including two executive Directors, one non-executive Director, and three independent non-executive Directors [103]. - The Company has mechanisms for independent non-executive directors to express their views openly and provide independent professional judgments on the Group's development and risk management [109]. - Regular Board meetings are held at least four times a year, with additional meetings as deemed appropriate by the Board [117]. - The Company complied with the Listing Rules regarding the independence of non-executive directors for the year ended December 31, 2022 [126]. - All directors are subject to retirement by rotation at least once every three years, ensuring regular re-evaluation of the Board's composition [128]. - The Nomination Committee is responsible for reviewing the Board's structure and monitoring the appointment and succession planning of directors [129]. Diversity and Inclusion - The Board consists of six Directors, including one female executive Director, reflecting the company's commitment to gender diversity [143]. - The company has established a Board Diversity Policy to achieve a balance of expertise, skills, experience, and perspectives [141]. - The company recognizes the value of gender diversity and will explore channels to increase female representation in its workforce [148]. - The company aims to increase the representation of women across all levels of the organization without setting specific gender targets [154]. Audit and Risk Management - The Audit Committee is responsible for maintaining relationships with the auditor and reviewing financial information and internal control systems [152]. - The Audit Committee held three meetings during the year ended December 31, 2022, to discuss the group's financial results and audit plans [160]. - The Group's risk management and internal control procedures include a management structure with clearly defined lines of responsibility and limits of authority [200]. - The primary aim is to provide reasonable assurance that assets are safeguarded against misappropriations [200]. - The procedure is designed to identify, evaluate, and manage risks effectively [200].
德合集团(00368) - 2022 - 年度财报