Financial Performance - The total revenue of SFK Construction Holdings Limited increased by 1.17% to HK$3,667.08 million for the year ended 31 December 2022, compared to HK$3,624.51 million in 2021[11]. - The net profit attributable to equity shareholders for the year was HK$18.73 million, up from HK$17.43 million in 2021[11]. - Revenue for 2022 increased by approximately HK$42.57 million, or 1.17%, from HK$3,624.51 million in 2021 to HK$3,667.08 million in 2022[57]. - Revenue from general building business decreased by approximately HK$9.30 million, or 0.33%, from HK$2,787.28 million in 2021 to HK$2,777.98 million in 2022[58]. - Revenue from civil engineering business increased by approximately HK$2.83 million, or 0.46%, from HK$608.97 million in 2021 to HK$611.80 million in 2022[59]. - Gross profit decreased from HK$85.71 million in 2021 to HK$77.41 million in 2022, with a gross profit margin of 2.11% compared to 2.36% in the previous year[65][66]. - Other revenue significantly increased to HK$33.02 million in 2022 from HK$3.64 million in 2021, mainly due to government subsidies of approximately HK$32.22 million[67][69]. - Administrative expenses decreased from HK$65.44 million in 2021 to HK$63.16 million in 2022, primarily due to lower rental charges[73]. - Finance costs rose to HK$3.18 million in 2022 from HK$2.41 million in 2021, attributed to increased bank interest rates[74]. - Profit attributable to equity shareholders increased to HK$18.73 million in 2022 from HK$17.43 million in 2021[77][83]. Project Awards and Ongoing Projects - The Group was awarded 19 new projects in Hong Kong with a total original contract sum of approximately HK$4,163 million, compared to HK$3,345 million in 2021[12]. - The outstanding value of ongoing projects as of 31 December 2022 was approximately HK$7.1 billion, an increase from HK$6.3 billion in 2021[12]. - A new civil engineering project was awarded after the year with a total original contract sum of approximately HK$197 million, maintaining a healthy level of outstanding projects[12]. - As of December 31, 2022, the total original contract sum of ongoing projects was approximately HK$16 billion, with an outstanding value of about HK$7.1 billion[32]. - Major projects included the construction of Public Rental Housing with an original contract sum of HK$3,740 million, generating revenue of HK$649.4 million during the financial year[33]. - The construction of Subsidised Sale Flats had an original contract sum of HK$1,911 million, with revenue recognized of HK$683.3 million[33]. - The company is involved in multiple ongoing construction and maintenance projects, including public housing developments at Kai Tak Sites 2B5 and 2B6[171]. - Significant projects include the construction of non-public housing facilities at Diamond Hill CDA, which encompasses transport infrastructure works and a water feature park[174]. Market and Business Strategy - The Group aims to diversify resources into different businesses and geographical areas to capture new business opportunities[14]. - The reopening of worldwide borders is expected to benefit the Group's business as the economy recovers from the COVID-19 pandemic[13]. - The business remains primarily focused on the Hong Kong market during the year[61]. - The Group's operations are primarily based in Hong Kong, with future growth dependent on the property market's prosperity and availability of major construction projects[100]. - The Group's strategy includes regular monitoring of liquidity requirements to ensure compliance with lending covenants and maintain sufficient cash reserves[108]. Safety and Environmental Management - The Group has established quality assurance measures and committed to high safety standards, enhancing public image and customer confidence through ISO certifications[49]. - The accident rate for the Group was 5.22 per 1,000 workers, significantly lower than the construction industry average of 29.5 per 1,000 workers in 2021, reflecting effective safety management[108]. - The Group has established an environmental management system in accordance with ISO14001:2015 standards, first certified in 2006[123]. - The company aims to minimize environmental pollution and waste at construction sites, demonstrating its commitment to sustainable practices[184]. - The company is enhancing the deodourisation system at Stonecutters Island Sewage Treatment Works, reflecting its focus on environmental management[180]. Corporate Governance and ESG - The ESG Working Group has been established to manage environmental, social, and governance issues, indicating a structured approach to sustainability[185]. - The Board has set measurable targets for key ESG aspects, including emission reduction and energy efficiency, to monitor performance effectively[186]. - The Board has adopted a "Top-down" management approach for ESG governance, overseeing the implementation and effectiveness of ESG-related risk management[198]. - The company recognizes its corporate social responsibility and is committed to addressing material risks related to ESG impacts from its operations[182]. - The company supports various non-profit organizations through sponsorships, donations, and volunteering, especially during challenging times[193]. Financial Position and Liquidity - The Group's cash and bank balances (excluding pledged deposits) increased to HK$262.56 million from HK$236.84 million in 2021, indicating improved liquidity[108]. - The current ratio of the Group as of December 31, 2022, was 1.25, an increase from 1.20 in 2021[133]. - The gearing ratio decreased to 13.45% in 2022 from 21.86% in 2021, reflecting a reduction in debt relative to equity[143]. - Net current assets rose to HK$312.03 million in 2022, up from HK$282.92 million in 2021[144]. - The Group maintained a healthy liquidity position with cash and cash equivalents of HK$262.56 million as of December 31, 2022, compared to HK$236.84 million in 2021[138].
新福港(01447) - 2022 - 年度财报