Financial Performance - The group generated revenue of approximately HKD 214.7 million for the year ended December 31, 2021, compared to HKD 143.1 million in 2020, representing a year-on-year increase of approximately 50%[5] - The group achieved a profit of approximately HKD 4 million for the year, a significant turnaround from a loss of approximately HKD 63 million in 2020[5] - Other income and gains from continuing operations for the fiscal year 2021 amounted to approximately HKD 7,700,000, an increase of about 32.4% compared to the previous fiscal year[16] - The group recorded a profit of approximately HKD 4,000,000 from continuing operations for the fiscal year 2021, compared to a loss of approximately HKD 63,000,000 in 2020[16] - The company reported a significant financial performance for the fiscal year ending December 31, 2021, with total revenue contributions from the top five customers accounting for approximately 36.8%, with the largest customer contributing about 12.5%[85] Revenue Breakdown - Revenue from machinery sales decreased by approximately 3.7% to HKD 11.7 million due to reduced demand for new cranes in Hong Kong and Singapore[11] - Rental income from machinery leasing increased by approximately 68.4% to HKD 170.4 million, primarily driven by the development of the tower crane rental market in China[11] - Service revenue rose by approximately 11.4% to HKD 30.9 million, attributed to increased demand for services in Hong Kong[11] Property Development and Expansion Plans - The group has a property development project in Mong Kok, with a total area of 2,718 square feet, currently under development and expected to be completed by February 2024[13] - The group plans to continue evaluating construction and real estate projects in Hong Kong, Singapore, and mainland China, with an aim to acquire construction companies and increase land reserves[6] - The group plans to continue expanding in the Chinese tower crane market and evaluate real estate projects in Hong Kong, Singapore, and mainland China to increase land reserves for future growth[39] Financial Position - As of December 31, 2021, the group's property, plant, and equipment were approximately HKD 187,600,000, representing an increase of about 35.2% from December 31, 2020[16] - As of December 31, 2021, the group's total equity increased to approximately HKD 132,200,000, compared to approximately HKD 127,300,000 in 2020[19] - The group's current liabilities net value was approximately HKD 33,700,000 as of December 31, 2021, down from approximately HKD 39,500,000 in 2020[20] - The group's debt-to-equity ratio increased to 2.0 as of December 31, 2021, compared to 1.8 in 2020, primarily due to an increase in interest-bearing loans[27] Audit and Compliance - The audit opinion for the financial statements for the year ended December 31, 2020, was modified due to limitations in the audit scope related to the sale of the subsidiary, Jia Cheng Group[45] - The management acknowledged that the inability of the auditors to access the offices and plantations of Guangdong Dahe Biotech Co., Ltd. restricted the acquisition of sufficient audit evidence[41] - The modification of the audit opinion is limited to the comparability of the consolidated profit and loss and other comprehensive income statements for the years ended December 31, 2020, and December 31, 2021[45] - The auditors expect that the modification to the audit opinion can be removed in the consolidated financial statements for the year ending December 31, 2022[45] - The management is aware that any necessary adjustments could impact the group's assets, liabilities, accumulated losses, and performance for the year ended December 31, 2021[41] Corporate Governance - The company has maintained good relationships with employees, customers, and suppliers, emphasizing the importance of these relationships for achieving short-term and long-term goals[69] - The company has adopted a standard code for securities trading by directors, confirming compliance throughout the year[132] - The board currently consists of six members with backgrounds in finance, law, accounting, and business[135] - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific areas[150] - The company has implemented sufficient insurance coverage for directors against legal liabilities arising from corporate activities[139] Shareholder Engagement - The company emphasizes maintaining a consistent and stable dividend policy, considering long-term interests and sustainable development[193] - Shareholders holding at least 10% of the voting rights can request a special general meeting within two months of their request[197] - The company encourages shareholders to attend annual and special general meetings to directly inquire with the board[198] - The company aims to enhance corporate governance and welcomes shareholder feedback to improve transparency[191] - All corporate communications are published on the company's website to ensure transparency and accessibility for investors[192] Risk Management - The company adopted the COSO Enterprise Risk Management framework to conduct a risk assessment for the year[181] - The risk management and internal control systems are designed to manage risks, not eliminate them, providing reasonable assurance against material misstatement or loss[186] - The group prepared a risk report covering primary risks and related action plans to mitigate those risks[187] - The board and audit committee confirmed the effectiveness of the company's risk management and internal control systems for the year[190]
佳兆业资本(00936) - 2021 - 年度财报