Financial Performance - Total revenue increased by approximately 97.6% from about HKD 132.3 million for the year ended December 31, 2020, to about HKD 261.4 million for the year ended December 31, 2021[10]. - The company turned a profit with a total comprehensive income of approximately HKD 10.7 million for the year ended December 31, 2021, compared to a loss of about HKD 1.8 million for the previous year[10]. - Gross profit for the year was approximately HKD 27.2 million, resulting in a gross profit margin of about 10.4%, up from 6.2% in the previous year[21]. - The company reported a turnaround from a loss of approximately HKD 1.8 million in the previous year to a profit of approximately HKD 10.7 million for the current year, representing an improvement driven by a revenue increase of 97.6%[26]. - The net profit margin for the current year was approximately 4.1%, compared to a net loss margin of approximately 1.3% for the year ended December 31, 2020[26]. Project and Contract Information - The number of projects on hand as of December 31, 2021, was 27, with an unpaid total contract value of approximately HKD 705.8 million[15]. - The average contract value increased compared to the previous year, contributing to the overall revenue growth[16]. - The increase in sales costs was about 88.7%, rising from approximately HKD 124.1 million to about HKD 234.2 million, attributed to more projects and larger contract sizes[20]. Expenses and Costs - Administrative expenses increased by approximately 13.7% to about HKD 17.4 million, primarily due to increased employee salaries and discretionary bonuses[22]. - Other income decreased significantly by about 79.6% to approximately HKD 1.0 million, mainly due to the absence of a one-off subsidy received in the previous year[23]. - Employee costs for the year were approximately HKD 51.1 million, an increase from HKD 38.5 million in 2020, with a total of 123 employees as of December 31, 2021[46]. Assets and Liabilities - Total assets as of December 31, 2021, were approximately HKD 218.2 million, up from HKD 157.3 million in 2020, while total liabilities and equity were approximately HKD 83.5 million and HKD 134.7 million, respectively[27]. - The company maintained a current ratio of approximately 2.5 times as of December 31, 2021, down from 3.3 times in 2020[27]. - The company had no interest-bearing loans or borrowings as of December 31, 2021, consistent with the previous year[27]. Capital and Investments - The company issued 200 million shares at a price of HKD 0.061 per share, raising approximately HKD 12.2 million in total proceeds, with a net amount of approximately HKD 11.9 million after expenses[38]. - The company has invested approximately HKD 32.1 million in new construction projects as of December 31, 2021[74]. - Approximately HKD 4.4 million was spent on recruiting experienced staff in 2021[77]. Corporate Governance - The company emphasizes good corporate governance to enhance accountability and transparency, aligning with the corporate governance code[132]. - The management team includes professionals with over 20 years of experience in accounting, auditing, and compliance matters[127]. - The company has appointed independent non-executive directors with significant experience in the construction and investment sectors[121]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a strong independent element[138]. - The company has established a board diversity policy to enhance competitive advantage and good corporate governance, focusing on various diversity aspects such as gender, age, and professional background[154]. Risk Management - The group employs a three-tier risk management approach to identify, assess, mitigate, and respond to risks[200]. - Business units are responsible for identifying, assessing, and monitoring risks associated with their operations as the first line of defense[200]. - Management defines rules and provides technical support as the second line of defense, ensuring risks remain within acceptable limits[200]. - The audit committee acts as the final line of defense, ensuring the effectiveness of the first and second lines through continuous checks and monitoring[200]. Future Outlook - The company expects ongoing impacts from the COVID-19 pandemic but maintains a positive outlook for 2022, focusing on core business areas[11]. - The company plans to continue developing its core business in building services engineering and maintenance[14].
立基工程控股(01690) - 2021 - 年度财报