Financial Performance - For the year ended December 31, 2022, the Group's revenue decreased by 19.0% to HK$588,951,000 compared to the previous year[13] - The net profit for the same period decreased by 91.4% to HK$4,564,000, with profit attributable to owners of the Company down 82.0% to HK$7,273,000[13] - Total EBITDA in 2022 decreased by 27.8% to HK$109,264,000 compared to 2021[13] - Group revenue decreased by 19.0% to HK$588,951,000 for the year ended December 31, 2022, compared to HK$727,167,000 in 2021[43] - Net profit attributable to owners of the Company decreased by 82.0% to HK$7,273,000 in 2022, down from HK$40,419,000 in 2021[43] - Basic earnings per share attributable to owners of the Company fell by 82.0% to HK cents 0.24 in 2022[27] - Average gross profit margin declined to 20.3% from 26.4% in the previous year, representing a decrease of 23.1%[81] - Gross profit for 2022 was HK$119,357,000, down 37.7% from HK$191,665,000 in 2021[169] - Operating profit decreased to HK$44,438,000 in 2022, a decline of 39.7% from HK$73,564,000 in 2021[169] - Profit for the year attributable to owners of the Company was HK$7,273,000, a significant drop of 82.0% compared to HK$40,419,000 in 2021[169] Equity and Dividends - As of December 31, 2022, equity attributable to owners of the Company was HK$961,677,000, down from HK$1,052,779,000 in 2021[14] - The Board recommended a final dividend of HK$0.0038 per share, representing a payout ratio of approximately 158.6% of the profit attributable to owners for the year ended December 31, 2022[18] - The Board proposed a final dividend of HK cents 0.38 per share for the year ended December 31, 2022[27] - The company declared a dividend of HK$11,536,000 for the year, slightly down from HK$11,839,000 in 2021[169] Cash and Borrowings - Total bank borrowings as of December 31, 2022, were HK$97,959,000, a decrease from HK$198,970,000 in 2021[14] - Cash and cash equivalents as of December 31, 2022, were HK$270,279,000, down from HK$302,074,000 in 2021[14] - The Group's cash and bank balances were HK$270,279,000 in 2022, down from HK$302,074,000 in 2021, a reduction of 10.5%[105] - The significant reduction in bank borrowings, which fell to HK$97,959,000 in 2022 from HK$198,970,000 in 2021, a decrease of about 50.8%[172] Operational Performance - For the year ended December 31, 2022, the total segment revenue from environmental treatment and disposal services was approximately HK$373,494,000, a decrease of 18.1% from HK$456,400,000 in 2021[49] - The total waste collected and disposed of was approximately 100,096 metric tonnes, down 11.6% from 113,346 metric tonnes in 2021[51] - The profit margin (pre-tax) for the environmental treatment and disposal services segment was approximately 5.5%, a decline from 10.2% in 2021[57] - Revenue from environmental treatment and disposal services for industrial and medical wastes fell by 18.2% to HK$373,494,000[81] - Revenue from environmental equipment construction and installation services decreased significantly by 41.5% to HK$72,810,000[81] - The average utilization rate of factory buildings and facilities increased to 96.0% in 2022 from 93.8% in 2021, while the average utilization rate of sewage treatment capacity decreased to 21.1% from 26.0%[65] Future Outlook and Strategy - The Group anticipates stable business operations as COVID-19 containment policies are relaxed and market demand revives[19] - The Group will continue to explore new opportunities in the environmental industry while managing operational risks[19] - The Group aims to maintain healthy indebtedness and liquidity, ensuring effective cash management and internal control[19] - Future operations are expected to achieve long-term sustainable development despite uncertainties from the pandemic[22] - The Group is focused on environmental-related business and is exploring opportunities for business restructuring and industrial upgrades to improve sustainable performance[76] - The Group is exploring opportunities for business optimization and market diversification to mitigate financial risks[165] Risks and Challenges - The competition in the hazardous waste treatment market has intensified, with an increasing number of licensed disposal companies and no corresponding increase in hazardous waste production, affecting profitability[155] - The Group faces significant increases in credit risk due to a rise in underperforming accounts receivable from distressed clients during economic uncertainty, particularly influenced by COVID-19[164] - The Group relies on the continuous renewal of hazardous waste operating permission licenses from the PRC Government, with risks of temporary suspension or delays in renewal[154] - The Group engages in hazardous waste incineration and landfill operations, facing environmental and social responsibility risks from clients' incidental breaches of emission limits[157] Management and Governance - The board includes independent non-executive directors with extensive experience in engineering and accounting, enhancing corporate governance[199][200] - The company is committed to maintaining high standards of financial reporting and compliance through its audit committee[199] - The independent directors have a strong academic background, with qualifications from prestigious institutions, contributing to informed decision-making[199][200] - The Group has appointed independent consultants to periodically review the effectiveness of its risk management and internal control systems[161]
新宇环保(00436) - 2022 - 年度财报