Financial Performance - The company recorded an 84% increase in revenue to HKD 45,102,000 for the fiscal year 2022, up from HKD 24,496,000 in 2021, primarily due to the inclusion of revenue from Canadian oil assets[11] - The company incurred a loss attributable to owners of HKD 46,746,000, compared to a loss of HKD 29,371,000 in the previous year, largely due to increased depreciation and expected credit losses[11] - Basic loss per share was HKD 0.89 cents, compared to HKD 0.56 cents in 2021[11] - The company reported a loss attributable to shareholders of HKD 46,746,000 for the fiscal year, compared to a loss of HKD 29,371,000 in the previous year, driven by increased depreciation and expected credit loss provisions[22] - The group reported a loss attributable to equity holders of HKD 46,746,000 for the year, compared to a loss of HKD 29,371,000 in 2021[58] Revenue Sources - The Canadian oil assets generated revenue of HKD 30,932,000 and an operating profit of HKD 4,078,000 from July 16 to December 31, 2022[8] - The oil exploration and production segment reported a profit of HKD 4,078,000, a turnaround from a loss of HKD 4,112,000 in 2021[9] - The solar energy business achieved a profit of HKD 1,403,000, compared to a profit of HKD 89,000 in the previous year[9] - Solar business contributed revenue of HKD 6,536,000 and operating profit of HKD 1,403,000 in the fiscal year 2022, significantly up from HKD 652,000 and HKD 89,000 in 2021[33] Investments and Acquisitions - The company completed the acquisition of Canadian oil assets for CAD 22,500,000 (approximately HKD 135,461,000) to enhance its oil exploration and production capabilities[8] - The acquisition of Canadian oil assets was completed on July 16, 2022, for a total consideration of CAD 22,500,000 (approximately HKD 135,461,000), contributing HKD 30,932,000 in revenue and HKD 4,078,000 in operating profit for the fiscal year[18] - The company invested a total of HKD 51,516,000 in solar power projects as part of its strategy to diversify and balance its energy portfolio[9] - Total investment in solar power projects reached HKD 51,516,000 by December 31, 2022, with an additional capital commitment of approximately HKD 6,978,000[33] Credit Losses and Lending Business - The expected credit loss provision amounted to HKD 20,019,000, compared to a reversal of HKD 4,356,000 in the previous year[11] - The lending business recorded a loss of HKD 16,237,000, down from a profit of HKD 17,440,000 in 2021[9] - The loan portfolio size decreased by 47% to HKD 60,582,000 as of December 31, 2022, down from HKD 115,001,000 in 2021, primarily due to loan repayments[39] - Expected credit loss provisions for loans and interest amounted to HKD 20,019,000 in 2022, compared to a reversal of HKD 4,356,000 in 2021[34] Operational Changes - The company has ceased its oil exploration and production operations in Argentina, focusing on the Canadian assets for future growth[23] - The company plans to drill 6, 14, 18, and 11 new oil and gas wells in 2022, 2023, 2024, and 2025, respectively, with adjustments made to the 2023 drilling plan[30] - The average remaining reserve life of operational oil and gas wells exceeds ten years, with 35 wells in operation as of December 31, 2022[26] Corporate Governance - The company has a strong management team with extensive experience in finance, accounting, and corporate governance[86] - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balance of power[138] - The company emphasizes the importance of transparency and accountability in corporate governance to benefit shareholders[128] - The company has complied with all applicable provisions of the corporate governance code for the year ended December 31, 2022, except for certain deviations explained in the report[130] Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report outlines the group's sustainable development strategies and management methods[189] - The board is collectively responsible for the management of ESG matters and discusses related risks and opportunities at least annually[195] - The group aims to balance business expansion with stakeholder interests through a sustainable development framework[195] - The board has set multiple environmental and social key performance indicators (KPIs) to improve employee welfare and reduce greenhouse gas emissions[199] Financial Position - As of December 31, 2022, the total assets of the group amounted to HKD 433,689,000, a slight decrease from HKD 442,915,000 in the previous year[60] - The group’s equity attributable to owners decreased to HKD 376,313,000, equivalent to approximately HKD 7.18 per share, down from HKD 8.13 per share in 2021[60] - The group holds liquid assets of HKD 90,568,000 as of year-end, a decrease from HKD 198,548,000 in the previous year[59] Risk Management - The board is responsible for maintaining effective risk management and internal control systems, which are reviewed annually to protect shareholder interests[165] - The group has established procedures to identify, assess, and manage significant risks, including environmental, social, and governance risks, integrated into daily operations[167] - The external consultant conducted a review of the risk management and internal control systems, providing recommendations for improvements, which have been acknowledged by the audit committee[168] Shareholder Communication - The group has adopted a shareholder communication policy to ensure timely and equal access to comprehensive company information for shareholders and investors[182] - As of December 31, 2022, the board reviewed the effectiveness of the shareholder communication policy and found it to be properly implemented[182]
长盈集团(控股)(00689) - 2022 - 年度财报