Financial Performance - In 2022, the Group achieved significant improvement in revenue and operating indicators compared to the previous year, with all profit units meeting their strategic targets[13]. - Revenue from contracts with customers increased to HK$964,246,000 in 2022, up from HK$756,123,000 in 2021, representing a growth of approximately 27.5%[36]. - Operating profit improved to HK$4,210,000 in 2022, compared to an operating loss of HK$122,537,000 in 2021, marking a significant turnaround[36]. - The basic loss per share decreased to (1.24) cents in 2022 from (6.81) cents in 2021, indicating an improvement in financial performance[38]. - Total loss for the year was HK$26,250,000, a reduction from HK$157,179,000 in the previous year, reflecting a substantial decrease in losses[37]. - The Group's loss for the year reduced substantially from HK$157,179,000 in 2021 to HK$26,250,000 in 2022, primarily due to improved operating results in the security and infrastructure segments[49]. - The Group reported a consolidated revenue of HK$964,246,000 for the year ended December 31, 2022, representing an increase of 28% from HK$756,123,000 in 2021[46]. - The security, insurance, and infrastructure business segment generated revenue of HK$527,518,000, up from HK$236,148,000 in 2021, marking a significant growth[56]. - The security segment's revenue increased by 137%, from HK$178,616,000 in 2021 to HK$423,657,000 in 2022, contributing approximately 44% of the Group's total revenue[51]. - The insurance segment recorded revenue of HK$527,518,000 in 2022, up from HK$236,148,000 in 2021, with an operating profit of HK$27,164,000 compared to an operating loss of HK$22,553,000 in the previous year[60]. Business Segments - The security business revenue increased, and its share in the Group's business segment further improved, with successful completion of ISO18788:2015 certification[14]. - The insurance business, represented by Global Pioneer Assurance S.A., made significant breakthroughs in investment income contributions[15]. - The logistics business, led by Frontier Logistics (Shanghai) Company Limited, focused on regional cooperation to enhance synergetic development[15]. - The aviation and logistics business segment reported a decrease in revenue of approximately HK$122,925,000, largely due to the shutdown of Transit Freight Forwarding (Pty) Ltd in South Africa[57]. - SH Logistics turned a loss of HK$10,743,000 in 2021 into a profit of HK$2,219,000 in 2022, aided by increased logistics services for infrastructure projects in Africa and Southeast Asia[63]. - The healthcare segment generated total revenue of HK$42,831,000 in 2022, significantly up from HK$3,891,000 in 2021, with an operating profit of HK$7,511,000 compared to HK$138,000 in the previous year[69]. Strategic Focus and Development - The Group's strategic focus is on comprehensive and diversified development in logistics, insurance, and aviation, with security as the core[14]. - The Group is prepared to seize development opportunities in key countries and major projects despite a complex and volatile business environment[19]. - The group plans to leverage its accumulated professional knowledge and brand potential to achieve significant breakthroughs in 2023[34]. - The group has emphasized sustainable development as a strategic target, aiming to create long-term value for stakeholders[29]. - The Group aims to achieve close to breakeven as soon as possible amidst high operational costs due to rising fuel prices and inflation in overseas markets[77]. - The logistics segment is expected to operate close to breakeven or profit-making starting from 2023 after liquidating a loss-making arm in South Africa[88]. Cost Management and Financial Health - Employee benefit expenses rose to HK$347,152,000 in 2022, compared to HK$242,431,000 in 2021, an increase of approximately 43.3%[36]. - The Group implemented further cost-cutting measures in 2022, which contributed to the reduction in overall operating costs[49]. - Cash and cash equivalents decreased by HK$80,641,000, primarily due to net cash used in operating activities of HK$20,460,000 and repayment of lease liabilities of HK$25,188,000[41]. - The Group's current ratio decreased from 2.00 in 2021 to 1.58 in 2022, indicating a decline in short-term liquidity[46]. - The price to book ratio improved from 3.78 in 2021 to 2.06 in 2022, reflecting a better valuation of the company's equity[46]. - The Group's available cash and cash equivalents decreased to HK$186,790,000 in 2022 from HK$267,431,000 in 2021[98]. - The gearing ratio as of December 31, 2022, was approximately 17.5%, up from 16.6% in 2021[99]. Corporate Governance - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2022[142]. - The Board of Directors consists of 12 members, including 3 executive directors and 5 non-executive directors[143]. - The Chairman and the Chief Executive Officer roles are separate, ensuring proper governance and oversight[144]. - The Board has established four committees: Audit Committee, Nomination Committee, Remuneration Committee, and Risk Committee[144]. - Independent non-executive directors are required to confirm their independence annually, and all have met the independence requirements[150]. - The Company provides ongoing training for directors to ensure they are updated on business developments and regulatory changes[151]. - The Group is committed to accountability, transparency, and protecting shareholders' interests as part of its corporate governance practices[141]. Risk Management and Future Outlook - The geopolitical tensions and strong US dollar are expected to create uncertainties in 2023, affecting capital spending and increasing funding costs[78]. - The Group is closely monitoring currency exchange risks in various regions, including KES, ZAR, and RMB, and will consider hedging if necessary[114][116][120]. - The Group has not utilized any financial instruments for hedging purposes during the year ended 31 December 2022 due to high costs[114][120]. - The business rescue proceedings of TFF were discontinued, and the application for liquidation was approved by the Court in January 2023[135]. - The Group has filed a claim exceeding €10,000,000 (approximately HKD 83,300,000) against the claimant for breach of purchase and repayment agreements[137]. Employee and Community Engagement - The group has actively engaged in community support during the pandemic, showcasing its commitment to social responsibility[31]. - The total number of employees increased to 2,102 as of December 31, 2022, from 1,837 in 2021, reflecting expansion in security businesses[96]. - A total of 23,400,000 share options were granted under the share option scheme during the year ended December 31, 2022, to incentivize eligible directors and employees[91]. Diversity and Inclusion - The Board currently comprises eleven male and one female directors, reflecting a need for improved gender diversity[194]. - The Company has adopted a Board Diversity Policy that considers various aspects such as gender, age, and professional experience to achieve diversity[193]. - The Nomination Committee recognizes the importance of gender diversity at the Board level and aims for continuous improvement[198]. - The company maintained an adequate ratio of women to men in the workplace during the year[199].
先丰服务集团(00500) - 2022 - 年度财报