Revenue and Financial Performance - The group's revenue increased by 15.9% from approximately HKD 331.6 million in 2020 to approximately HKD 384.4 million in 2021[21] - The construction and engineering services contributed the majority of the group's revenue, with total revenue for this segment approximately HKD 377.4 million, up from approximately HKD 325.7 million in the previous year, representing a growth of about 15.9%[27] - The property-related services revenue increased by 16.7% to approximately HKD 700,000, with gross profit rising by 5.0% to approximately HKD 210,000[21] - The total revenue of the group increased by approximately HKD 52.8 million or 15.9% to approximately HKD 384.4 million for the year ended December 31, 2021, compared to approximately HKD 331.6 million for the previous year[37] - Revenue from construction and engineering services rose by approximately HKD 51.7 million or 15.9% to approximately HKD 377.4 million for the year ended December 31, 2021, driven by increased work orders from ongoing public slope engineering projects[38] - The gross profit for the group decreased by 50.0% to approximately HKD 2.6 million for the year ended December 31, 2021, compared to approximately HKD 5.2 million for the previous year[41] - The gross profit margin for the group was approximately 0.7% for the year ended December 31, 2021, down from approximately 1.6% for the previous year[41] - The gross profit for the construction and engineering segment decreased from approximately HKD 3.2 million in 2020 to approximately HKD 600,000 in 2021 due to losses recorded in two contracts[21] - Other income for the year ended December 31, 2021, was approximately HKD 5.2 million, a decrease from approximately HKD 11.6 million for the year ended December 31, 2020, primarily due to the absence of government subsidies related to the pandemic[44] Challenges and Strategic Plans - The group faced challenges in the outlook for construction and engineering services and property-related services in the coming years[21] - The group plans to review existing operations and business strategies to identify or seek new business opportunities to strengthen its revenue base[21] - The group plans to diversify its business strategy beyond the Hong Kong market to enhance future development and revenue base[35] - The group will closely monitor the market conditions and respond accordingly, particularly in the construction and engineering sector[36] - The group anticipates continued challenges in the business environment due to the ongoing pandemic, impacting operations in Cambodia and property-related services[36] Employee and Administrative Costs - The total employee cost was approximately HKD 30.3 million, a decrease from HKD 37.2 million in 2020, attributed to a reduction in project-related employees due to the completion of several public slope engineering projects[64] - The number of employees decreased from 146 as of December 31, 2020, to 91 as of December 31, 2021, primarily due to project completions[64] - Administrative expenses for the year ended December 31, 2021, were approximately HKD 27.1 million, a decrease of about 8.8% from approximately HKD 29.7 million for the year ended December 31, 2020, mainly due to savings in employee costs[47] Governance and Corporate Structure - The company adopted and complied with the corporate governance code as per the listing rules, ensuring adherence to high standards of corporate governance[86] - The board consists of six members, including three executive directors and three independent non-executive directors, with Mr. Chan Chi serving as the chairman[92] - The company has established various committees, including the audit committee, nomination committee, and remuneration committee, to oversee specific areas of governance[89] - The independent non-executive director Mr. Chan has over ten years of experience in finance, accounting, and treasury, enhancing the board's expertise[80] - The company emphasizes the importance of effective corporate governance practices to enhance shareholder value and protect stakeholder interests[86] - The company has adopted a board diversity policy to enhance effectiveness, considering factors such as gender, age, cultural background, and experience[93] - The board has established measurable goals to implement the diversity policy and will review these goals periodically to ensure progress[93] Risk Management and Internal Controls - The company emphasizes the importance of internal controls and risk management, with the audit committee overseeing these areas[115] - The board of directors is responsible for ensuring that the financial statements reflect the group's ongoing business accurately[122] - The company has established guidelines and procedures for approving and controlling expenditures to ensure the reliability of financial reporting[133] - CT Partners Consultants Limited was engaged to review the effectiveness and efficiency of the group's risk management and internal control systems for the year ending December 31, 2021[134] - No significant issues affecting the group's financial, operational, compliance, control, and risk management were identified by CT Partners[134] - The board has adopted recommendations from CT Partners to improve internal controls and risk management systems[134] Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report adheres to the guidelines set by the Hong Kong Stock Exchange, ensuring compliance with relevant regulations[154] - The company has established an ESG working group to oversee the management of ESG-related risks and opportunities[158] - The board is committed to regularly reviewing ESG performance against set targets to enhance overall strategy and objectives[159] - The company holds ISO certifications for quality management (ISO 9001:2015) and occupational health and safety (OHSAS 18001:2007)[159] - The company aims to reduce non-hazardous waste by 2% per project by 2026 compared to the review year[174] - The company plans to reduce greenhouse gas emissions by 10% by 2026 compared to the 2021 baseline[178] - The company has implemented measures to monitor and reduce air pollution during construction activities[170] - The company has established a waste management hierarchy focusing on waste avoidance, reuse, recycling, and proper disposal[173] Financial Position and Investments - The total cash and bank balances as of December 31, 2021, were approximately HKD 186.3 million, an increase from approximately HKD 156.3 million as of December 31, 2020[55] - The capital-to-debt ratio as of December 31, 2021, was approximately 0.6%, down from about 1.2% as of December 31, 2020, primarily due to a reduction in lease liabilities[57] - The company did not declare any final dividend for the year ended December 31, 2021, consistent with the previous year[54] - As of December 31, 2021, the company had no significant investments or acquisitions of subsidiaries and associates during the year[62] Communication and Stakeholder Engagement - The company emphasizes effective communication with shareholders and potential investors to enhance investor relations[140] - The company has a website that provides updated information on business operations, financial data, and corporate governance practices[140] - Stakeholder engagement is prioritized, with transparent communication channels established to assess the impact of business decisions[161] - The company actively communicates with stakeholders through various methods, including annual financial reports and seminars[162]
致浩达控股(01707) - 2021 - 年度财报