Financial Performance - The Group's revenue for the year decreased by approximately 33.3% to MOP 184.5 million[22] - The Group recorded revenue of MOP184.5 million for the year, representing a year-on-year decrease of 33.3% from MOP276.8 million in 2020[61] - Gross profit for the year was MOP43.4 million, with a gross profit margin of 23.5%[37] - The Group recorded a gross profit of MOP43.4 million for the Year, representing a year-on-year decrease of 27.4% from MOP59.8 million in 2020[85][86] - The gross profit margin increased to 23.5% for the Year, up from 21.6% in FY 2020, reflecting a 1.9 percentage point increase[87][88] - Other income rose by MOP0.3 million to MOP1.3 million, primarily due to interest income from bank time deposits[89][90] - Administrative expenses decreased by MOP0.3 million to MOP15.6 million, attributed to cost savings from the absence of listing-related expenses[94] - Income tax expense decreased by MOP0.2 million or 7.3% to MOP2.9 million, mainly due to a decrease in profit before tax[94] - The Group's profit for the Year decreased by MOP0.5 million or 1.6%, with a significant impact from the absence of listing expenses recorded in the prior year[94] - Excluding listing expenses, the profit for the Year would have decreased by MOP15.6 million or 37.3% compared to FY 2020[94] - The net profit excluding listing expenses was MOP221.2 million for 2021, compared to MOP194.7 million in 2020, reflecting an increase of approximately 13.5%[96] Economic Impact - The global economic downturn and travel restrictions significantly impacted the Macau economy and the gaming and entertainment sector[21] - The ongoing COVID-19 pandemic has materially adversely impacted tourism and related industries in Macau, affecting infrastructure investments[61] - The total number of new projects from the private sector dropped due to the unstable economic situation during the pandemic[37] - The outlook for 2022 is expected to be full of uncertainties, with management remaining vigilant[24] - More than 70% of Macau's citizens were fully vaccinated by the end of 2021, indicating readiness for economic recovery[37] - The vaccination rate in Macau surpassed the required threshold much sooner than most cities globally, contributing to a potential economic recovery[116] Strategic Focus - Management remains cautiously optimistic about the future development of the Group and Macau's E&M industry[22] - The Company has focused on consolidating internal resources and enhancing capacity during the economic downturn[23] - Staff training has been prioritized to ensure the Group can navigate the recession effectively[23] - The Company aims to adhere to capital expenditure guidelines to position itself for new projects when recovery occurs[24] - The Group continues to submit new project tenders to maintain business stability and revenue growth[37] - The Group emphasizes stringent cost control and rationalization to navigate the sluggish state of the E&M industry in the coming financial year[116] Project and Investment Status - As of December 31, 2021, the Group had 23 projects on hand, including both public and private sector projects[37] - The Group successfully secured three large projects related to government housing, with a total value exceeding MOP88.2 million[37] - The Group's revenue recognition for some projects has been deferred to 2022 due to stringent cost control measures in government projects[37] - The Macau Government has commissioned numerous new construction projects, providing opportunities for the Group to tender for new projects in 2022 and beyond[117] - The Group had no significant investments or material acquisitions during the year, maintaining a conservative investment strategy[100] Financial Position - The Group maintained a healthy financial position with bank balances of MOP176.0 million and no bank borrowings as of December 31, 2021[37] - As of December 31, 2021, the Group's current ratio improved to 6.8 times, up from 4.9 times in 2020[96] - Total bank balances as of December 31, 2021, were MOP176.0 million, an increase from MOP153.5 million in 2020[96] - The Group maintained a nil gearing ratio as of December 31, 2021, indicating no outstanding loans or borrowings[99] - The net proceeds from the listing amounted to HK$51.6 million (approximately MOP53.1 million) after deducting related expenses[102] - The Board resolved to reallocate HK$6.3 million of unutilized net proceeds for specific material costs and upfront expenditures related to new projects awarded in the first half of 2021[102] - The Group had outstanding performance bonds of MOP6.7 million as of December 31, 2021, secured by pledged bank deposits of MOP1.9 million[109] - Total credit facilities obtained by the Group amounted to MOP149.6 million, significantly increased from MOP5.2 million in 2020[109] Employee and Operational Integrity - The Group's employee count in Macau decreased to 59 as of December 31, 2021, down from 73 in 2020, with 40 being Macau residents[111] - The Group has not faced any violations of health and safety-related laws and regulations during the Reporting Period, ensuring project schedules are not affected[156] - There were no violations of relevant laws and regulations regarding product responsibility that significantly impacted the Group during the Reporting Period[173] - The Group has not encountered any corruption lawsuits against itself or its employees during the Reporting Period, maintaining its operational integrity[177] - The Group identified occupational health and safety, anti-corruption, employment systems, training and development, child and forced labour, and product responsibility as the most important ESG issues in its business[188] Health and Safety Measures - The Group has established pandemic procedures and allocated resources to combat pandemics, ensuring timely communication[199] - Employees are required to wear masks and maintain social distancing to prevent the spread of pandemics[199] - A green health code is required to enter casino and government-related premises[199] - The Group has formulated the "Accident Handling Guide" to respond to construction safety accidents and reduce hazards[195] - The Engineering Department is responsible for training on-site workers in high-risk positions and ensuring the use of protective equipment[194] - The Group invests in creating a healthy, safe, fair, and positive work environment for employees[196] - The Group maintains a close working relationship with subcontractors to ensure a continuous safe working environment on projects[194] Dividends - The Board has recommended a final dividend of HK2.03 cents per share for the year ended December 31, 2021, compared to nil in 2020[121] - A special dividend of HK3.97 cents per share has also been proposed, which the Board believes will not materially impact the Group's financial position[121] - The payment of both dividends is subject to shareholder approval at the upcoming annual general meeting, with expected payment around June 24, 2022[121]
濠江机电(01408) - 2021 - 年度财报