Financial Performance - The total revenue of the Group decreased by 3.91% to HK$3,624.51 million in 2021, compared to HK$3,772.12 million in 2020[14]. - The Group recorded a net profit attributable to equity shareholders of HK$17.43 million in 2021, recovering from a net loss of HK$19.03 million in 2020[14]. - Revenue from general building and civil engineering works amounted to HK$2,787.28 million and HK$608.97 million, representing approximately 76.90% and 16.80% of total revenue for the year[55]. - Other revenue for 2021 amounted to HK$3.64 million, a decrease from HK$95.85 million in 2020, primarily due to a one-off government subsidy in the previous year[82]. - The Group's revenue from civil engineering works was HK$608.97 million, a slight decrease from HK$648.80 million in the previous year[55]. - Revenue from other services increased to HK$228.26 million in 2021, representing 6.30% of total revenue, up from 5.69% in 2020[75]. - Gross profit for the year was HK$85.71 million, compared to a gross loss of HK$39.92 million in 2020, marking a significant recovery[80]. - Gross profit margin improved to 2.36% in 2021 from -1.06% in 2020, attributed to better cost control and improved market conditions[81]. - The decrease in revenue was mainly due to the completion of certain contracts, impacting both general building and civil engineering segments[72][74]. Project Awards and Portfolio - The Group was awarded 7 new projects with a total original contract sum of approximately HK$3,345 million in 2021, up from HK$1,933 million in 2020[15]. - The outstanding value of ongoing projects as of December 31, 2021, was approximately HK$6.3 billion, an increase from HK$5.3 billion in 2020[15]. - The Group's project portfolio includes 10 projects for general building works and 17 projects for civil engineering works[15]. - Major projects included the construction of public rental housing and subsidized sale flats, with original contract sums of HK$3,740 million and HK$1,911 million, respectively[38]. - The Group has been awarded contracts for general building works after the year, with a notable project for public housing developments valued at HK$2,624 million[58]. - Ongoing construction projects include public rental housing developments and subsidized sale flats in various locations, including Diamond Hill and Ma On Shan[187][190]. - The Group is involved in significant infrastructure projects, such as the Three Runway System Project and maintenance contracts for piers[193][195]. Shareholder and Dividend Information - The Board recommends a final dividend of HK$0.03 per share to reward shareholders for their support[17]. - The leadership acknowledges the continuous support from shareholders, customers, and business partners[17]. Management and Operational Insights - The management expresses confidence in overcoming challenges and thriving due to the dedication of its professional team and employees[16]. - The management discussed the impact of project mix on performance, highlighting the importance of ongoing and future projects for revenue generation[27]. - The management discussion highlights the importance of adapting to ongoing economic challenges while maintaining operational efficiency[178]. - The Group's strategy includes regular monitoring of liquidity requirements to maintain sufficient cash reserves and funding lines from financial institutions[117]. Economic and Market Conditions - The Group anticipates benefiting from the economic recovery following the global COVID-19 vaccination efforts[16]. - The COVID-19 pandemic has posed significant challenges, affecting business operations and financial performance, with ongoing uncertainties regarding its impact[90]. - The COVID-19 pandemic is expected to continue impacting profit margins for contractors in Hong Kong, including the Group, in 2022[178]. - The construction industry in Hong Kong is expected to grow due to strong housing needs and government infrastructure projects, but future growth depends on the property market's prosperity[107]. Cost Control and Financial Management - Effective cost control measures have been implemented to optimize resource allocation and capture business opportunities[65]. - The company’s long-standing relationships with subcontractors contributed to effective resource allocation and cost control[69]. - Administrative expenses decreased to HK$65.44 million in 2021 from HK$78.17 million in 2020, mainly due to reduced staff costs[87]. - Finance costs significantly decreased to HK$2.41 million in 2021 from HK$12.05 million in 2020, attributed to improved liquidity and reduced bank borrowings[87]. - The repayment of bank loans has led to a decrease in bank interest expenses, aligning with the Group's strategy of effective cost control[151][152]. Employee and Safety Information - The Group has 1,571 employees as of December 31, 2021, with total remuneration approximately HK$476 million for the year[125]. - The accident rate for the Group was 7.49 per 1,000 workers in 2021, down from 10.04 per 1,000 workers in 2020, significantly lower than the industry average of 26.1 per 1,000 workers[118]. - The Group has not experienced any strikes, work stoppages, or labor disputes affecting operations during the year, indicating a stable workforce[125]. Compliance and Environmental Management - The construction industry is highly regulated, requiring the Group to maintain various registrations, licenses, and certifications to operate[91]. - The Group has maintained a low number of environmental-related non-compliance incidents, with no convictions in 2020 and 2021[134][138]. - The Group has established an environmental management system in accordance with ISO14001:2015 standards and was awarded certification in 2006[133][137]. Financial Position and Liquidity - As of December 31, 2021, the Group's capital structure consisted of equity of HK$375.59 million, down from HK$397.59 million in 2020, and bank loans of HK$82.12 million, reduced from HK$200.42 million in 2020[144][147]. - The Group maintained a healthy liquidity position with cash and cash equivalents of HK$236.84 million as of December 31, 2021, compared to HK$449.83 million in 2020[145][148]. - The current ratio of the Group was 1.20 as of December 31, 2021, slightly up from 1.17 in 2020[145][148]. - The Group's gearing ratio improved significantly to 21.86% as of December 31, 2021, compared to 50.41% in 2020[155]. - Net current assets as of December 31, 2021, were HK$282.92 million, slightly down from HK$284.42 million in 2020[156]. Risks and Challenges - Reliance on contracts from the Hong Kong Government as the largest customer poses risks if there are delays or decreases in government spending[96]. - The Group's financial performance may be adversely affected if it fails to secure new tenders or if project estimates prove inaccurate[98]. - The Board considers that the Group was not exposed to significant foreign exchange risk due to its operations being primarily denominated in Hong Kong dollars[162].
新福港(01447) - 2021 - 年度财报