Company Overview - Sundart Holdings Limited is a leading integrated interior decoration contractor in Hong Kong, Macau, and China, specializing in residential, commercial, and hotel projects[2]. - The company expanded its interior decoration business to Macau in 2005 and to China in 2017, enhancing its market presence[2]. - In 2010, Sundart acquired a registered general contractor, enhancing its capabilities in construction and interior decoration services[2]. - The company manufactures interior decoration wood products in Dongguan, with most products used in its projects[2]. Financial Performance - Sundart's financial performance and user data for 2021 are detailed in the annual report, highlighting significant project completions and revenue growth[10]. - The group's revenue for the year was HKD 5,689.9 million, a decrease of 4.0% from HKD 5,929.1 million in the previous year[29]. - The net profit for the year was HKD 371.3 million, down from HKD 406.5 million in the previous year, representing a decline of 8.7%[29]. - Basic and diluted earnings per share were HKD 0.1720, compared to HKD 0.1883 in the previous year, reflecting a decrease of 8.4%[29]. - The group completed 38 individual contracts for interior decoration projects, each valued at no less than HKD 50 million, along with 2 renovation and construction projects[29]. - The group's revenue from renovation and construction business decreased by HKD 174.2 million or 64.9% to HKD 94.1 million, compared to HKD 268.3 million in the previous year[47]. - The gross loss from renovation and construction business increased by HKD 12.7 million or 604.8% to HKD 14.8 million, with a gross loss margin rising from 0.8% to 15.7%[47]. - The group's total revenue decreased by HKD 239.2 million or 4.0% to HKD 5,689.9 million, down from HKD 5,929.1 million in the previous year[52]. - The gross profit decreased by HKD 105.8 million or 11.6% to HKD 808.8 million, with the gross profit margin declining to 14.2% from 15.4%[52]. Market Outlook - The company aims to continue expanding its market presence and capabilities through strategic acquisitions and new project developments[2]. - Future outlook includes a focus on new product development and technology advancements in the interior decoration sector[2]. - The ongoing COVID-19 pandemic remains the largest uncertainty for the business operations in Hong Kong[30]. - The group aims to leverage its strong brand reputation and project management expertise to navigate current economic challenges[29]. - The development strategy for the Northern Metropolis is expected to enhance connectivity between Hong Kong and the Greater Bay Area, providing opportunities for the construction and interior decoration industry[30]. - The group will continue to monitor and manage risks to minimize any adverse impacts on business operations[30]. - The group aims to strengthen relationships with existing clients and actively expand new cooperation opportunities to drive future growth[34]. - The company anticipates continued economic growth in Hong Kong in 2022, contingent on the control of the local pandemic situation and external economic conditions[77]. - The Chinese government emphasizes a stable economic tone for 2022, with a projected GDP growth of 5.1% according to the World Bank[79]. Corporate Governance - The company continues to integrate effective corporate governance elements into its management structure and internal procedures[101]. - The company aims to uphold rigorous ethical and integrity standards across all business aspects, ensuring compliance with applicable laws and regulations[101]. - The company has established policies and procedures that align with the principles and code provisions of corporate governance[102]. - During the year, the company complied with the code provisions, except for certain deviations due to travel restrictions related to the COVID-19 pandemic[103]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2021[104]. - The board held a total of 17 meetings during the year, with four being regular meetings[110]. - The company has adopted a standard code of conduct for securities trading, which all directors confirmed compliance with throughout the year[104]. - The company has three independent non-executive directors, meeting the requirements of the listing rules[114]. - The chairman and the CEO roles are separated, with Mr. Liu serving as chairman and Mr. Ng as CEO, in compliance with governance codes[114]. Risk Management and Compliance - The company has implemented a risk management system to identify, assess, and respond to risks affecting business objectives[155]. - The board conducts an annual review of the effectiveness of the risk management and internal control systems[156]. - The company is committed to ensuring that all disclosures are clear and fair, presenting both positive and negative facts equally[160]. - The company has established a reporting procedure for internal personnel and business partners to report suspicious activities, ensuring confidentiality of the whistleblower's identity and information[200]. - Employees are prohibited from bribing any individuals or companies to obtain or retain business or gain confidential information[200]. Environmental, Social, and Governance (ESG) - The company is committed to corporate social responsibility while focusing on business development[179]. - The environmental, social, and governance report covers significant issues identified through materiality assessments conducted by the management[180]. - The company established a risk management framework to monitor risks related to environmental, social, and governance (ESG) factors, including energy consumption and environmental pollution[188]. - The board is responsible for setting the governance strategy and continuously reviewing the company's ESG performance[188]. - A total of 22 significant ESG issues were identified, with compliance and pollution emissions being among the top concerns[196]. - The company emphasizes the importance of employee welfare, equal opportunities, and occupational health and safety in its ESG strategy[196]. - The board approved the ESG report after management review, ensuring accountability and transparency in ESG matters[186].
承达集团(01568) - 2021 - 年度财报