Financial Performance - For the year ended December 31, 2021, the company recorded revenue of approximately HKD 91.9 million, a decrease of 46.0% compared to HKD 170.3 million in 2020[18]. - The gross profit for the year was HKD 11.2 million, down 41.4% from HKD 19.1 million in 2020[18]. - The company incurred a pre-tax loss of approximately HKD 46.7 million, an increase of 37.0% from a loss of HKD 34.1 million in 2020[19]. - The company recorded a net loss attributable to shareholders of approximately HKD 46.7 million for the year ended December 31, 2021, compared to a loss of approximately HKD 34.1 million in 2020[31]. - Revenue for the year was approximately HKD 91.9 million, a significant decrease of 46.0% from HKD 170.3 million in 2020, primarily due to delays in construction projects and a reduction in new tender activities[54]. - Revenue from Hong Kong projects decreased by approximately HKD 31.5 million or 29.0%, attributed to a weak economic environment and project delays caused by the COVID-19 pandemic[55]. - Revenue from Macau projects decreased by approximately HKD 46.9 million or 76.3%, despite less impact from the pandemic, due to cross-border restrictions affecting communication with project statuses[56]. - Gross profit decreased from approximately HKD 19.1 million to about HKD 11.2 million, a reduction of approximately HKD 7.9 million or 41.4%[57]. - Administrative expenses increased to approximately HKD 25.3 million, up about HKD 3.9 million or 18.2% from HKD 21.4 million in 2020, mainly due to increased wages and salaries[59]. Operational Challenges - The competitive landscape remains intense, leading to a decrease in the company's bid success rate and a reduction in revenue from stone supply and customer paving services[18]. - The company faced supply chain disruptions and labor shortages due to various quarantine policies, impacting the progress of existing construction projects[18]. - The ongoing COVID-19 pandemic has significantly impacted the company's operations, with project delays and a substantial decrease in the bid win rate[21]. - The competitive landscape for marble and granite supply and installation remains intense, with rising construction material and labor costs negatively affecting profit margins[22]. - The overall business environment in Hong Kong has deteriorated, affecting future tendering activities in the industry[22]. - The company has been unable to draw new borrowings from banks since November 20, 2020, and any further withdrawals require bank approval[34]. Financial Management - As of December 31, 2021, the company's current bank borrowings amounted to approximately HKD 42.9 million, down from HKD 158.8 million in 2020[31]. - The group has taken measures to alleviate liquidity pressure and improve its financial situation, including negotiating with banks to extend overdue loans and actively discussing repayment plans[35]. - As of December 31, 2021, the group obtained a loan of approximately HKD 80.6 million from executive directors, which is unsecured and repayable 12 months from the drawdown date at an annual interest rate of 5%[35]. - The group's current ratio and quick ratio for 2021 were 2.5 times and 1.8 times, respectively, indicating sufficient liquidity to meet financial obligations[39]. - The group is closely monitoring the impact of the COVID-19 pandemic on existing and potential projects, and has taken steps to expedite customer certification, billing, and collection for completed projects[39]. - The group has not received any formal repayment requests from banks despite overdue loans, and management believes that banks will not exercise their rights to demand immediate repayment[39]. - The group is actively seeking alternative financing sources, including debt or equity financing, to improve its capital structure and reduce overall financing costs[35]. - The company plans to improve liquidity and financial conditions by expediting project statuses and collection cycles, with bank borrowings reduced to approximately HKD 39.6 million[70]. Risk Management and Compliance - The audit committee agrees with management's view that the group can address uncertainties related to going concern issues[37]. - The company emphasizes the importance of sustainable development risk management to enhance business stability and growth amid current climate crises[94]. - The company has implemented a compliance management system to adhere to applicable laws and regulations, which is crucial for maintaining its reputation[117]. - The company has a zero-tolerance policy towards corruption and fraud, enhancing internal controls and employee awareness of anti-corruption laws[118]. - The company is committed to improving its internal control systems and regularly reviewing anti-corruption policies[140]. Environmental Impact - The total greenhouse gas emissions for the reporting period amounted to 30.99 tons of CO2 equivalent, representing a reduction of approximately 42% compared to 53.55 tons in 2020[145]. - Direct greenhouse gas emissions (Scope 1) decreased by 38.90% from 27.84 tons in 2020 to 17.01 tons in 2021[148]. - Indirect greenhouse gas emissions (Scope 2) decreased by 45.62% from 25.71 tons in 2020 to 13.98 tons in 2021[148]. - The density of total greenhouse gas emissions per employee decreased by 57.61%, from 2.43 tons in 2020 to 1.03 tons in 2021[148]. - The amount of non-hazardous waste generated surged from 0.93 tons in 2020 to 805.23 tons in 2021, primarily due to construction and demolition waste[153]. - The company plans to establish feasible targets to continuously improve waste management performance and reduce waste generation[155]. - The company aims to further reduce greenhouse gas emissions and set achievable reduction targets in the future[145]. Employee Management - The company emphasizes the importance of employee rights and welfare, ensuring a fair and diverse work environment[182]. - The company has implemented a transparent recruitment process to promote equal employment opportunities and prevent discrimination[180]. - As of December 31, 2021, the total number of employees in the company was 30, with a turnover rate of 43.33%[190]. - The employee turnover rate by gender was 38.10% for males and 55.56% for females[190]. - The percentage of employees receiving training during the reporting period was 73.33%, with an average training hours per employee of 4.25 hours[194]. - The company emphasizes continuous learning and has implemented various training programs, including onboarding and occupational training[191]. - The company encourages employees to participate in external training programs to improve their professional skills[191]. - The company plans to optimize training programs based on employee feedback to meet the needs of customers and society[191].
基石控股(01592) - 2021 - 年度财报