Financial Performance - For the Financial Year 2021, the Group's revenue decreased by approximately HK$7.2 million to approximately HK$101.7 million, compared to approximately HK$108.9 million for the Financial Year 2020[10] - The Group recorded a net loss of approximately HK$41.0 million in the Financial Year 2021, an improvement from the net loss of HK$66.1 million in the Financial Year 2020[10] - The decrease in revenue was mainly due to the combined effect of a decrease in gross loss margin and administrative and other operating expenses[10] - The Group's revenue for the Financial Year 2021 was approximately HK$101.7 million, representing a decrease of approximately 6.6% from HK$108.9 million in the Financial Year 2020[21] - The gross loss decreased from approximately HK$31.4 million in the Financial Year 2020 to approximately HK$13.9 million in the Financial Year 2021, with a gross loss margin decreasing from approximately 28.8% to approximately 13.7%[22] - Administrative and other operating expenses decreased by approximately HK$4.2 million, representing a decrease of approximately 12.3%, to approximately HK$29.9 million in the Financial Year 2021[23] - Net loss decreased by approximately HK$25.1 million to approximately HK$41.0 million in the Financial Year 2021, a decrease of approximately 38.0% compared to HK$66.1 million in the Financial Year 2020[26] Assets and Liabilities - As of 31 December 2021, the Group's current ratio was approximately 1.0, down from approximately 1.3 as of 31 December 2020[34] - The Group had total assets of approximately HK$74.5 million, financed by total liabilities of approximately HK$57.2 million and shareholders' equity of approximately HK$17.3 million[34] - Cash and bank balances as of 31 December 2021 were approximately HK$0.5 million, a significant decrease from approximately HK$10.9 million as of 31 December 2020[34] - The gearing ratio as of 31 December 2021 was approximately 115.2%, up from 61.2% as of 31 December 2020[35] - The Group recorded a debt ratio of approximately 115.2% as of December 31, 2021, compared to 61.2% on December 31, 2020[42] Capital Expenditure - Capital expenditure during the Financial Year 2021 was approximately HK$10.5 million, compared to HK$8.5 million in the Financial Year 2020[36] - Capital expenditure for the fiscal year 2021 was approximately HK$10.5 million, an increase from HK$8.5 million in the fiscal year 2020[43] Workforce and Employee Costs - As of December 31, 2021, the Group had 100 full-time employees, a decrease from 224 full-time employees as of December 31, 2020[61] - Employee costs for the Financial Year 2021 were approximately HK$73.3 million, down from HK$79.4 million in the Financial Year 2020, representing a decrease of about 6.9%[61] Market Conditions and Business Operations - The economic outlook remains uncertain, with the Group cautious about risks related to the COVID-19 pandemic[17] - The Group's operations are primarily affected by the availability of construction and civil engineering projects in Hong Kong and Macau, influenced by economic conditions and government policies[47] - Labour shortages in the construction industry have led to increased daily wages for workers in the concrete demolition sector in Hong Kong and Macau[50] - The Group's financial performance may be adversely affected if it fails to recruit or retain sufficient workers due to local labour supply shortages[51] - The Group's business is subject to risks of cost overruns and project delays, which can negatively impact profit margins and operating results[47] Corporate Governance - The Company has adhered to the principles of the corporate governance code during the Financial Year 2021, with one exception regarding the roles of Chairman and CEO being held by the same individual[91] - The Company complied with the applicable code provisions of the Corporate Governance Code throughout the Financial Year 2021, except for the separation of roles of chairman and chief executive officer[151] - The Board consists of six Directors, including three executive Directors and three Independent Non-Executive Directors (INEDs)[157] - The Board is responsible for formulating the Group's overall strategies, setting management targets, and supervising management performance[152] - The Company has a commitment to sound corporate governance for long-term success[150] - The Board regularly receives management update reports to assess the Group's performance and prospects[159] Audit and Compliance - The Audit Committee reviewed the Group's consolidated financial statements for the Financial Year 2021 and confirmed compliance with applicable accounting standards and adequate disclosures[82] - The Audit Committee consists of three independent non-executive directors, with Mr. Chow Ching To serving as the chairman, possessing relevant accounting and financial management expertise[191] - The Audit Committee is responsible for overseeing the internal control system and corporate governance practices[191] - The Audit Committee held two meetings during the Financial Year 2021[190] Management and Directors - Mr. Cheung Shek On has over 30 years of experience in the concrete demolition industry and has been with the Group since its establishment in 1985[108] - Mr. Chan Yuk Sing, co-founder of the Group, also has over 30 years of experience in the concrete demolition industry[109] - Mr. Chen Yeung Tak has over 14 years of experience in auditing, accounting, and financial management, and serves as the company secretary[110] - Mr. Mak has over 30 years of experience in the construction industry, having joined the Group in July 1996 and promoted to chief technical officer in December 2012[128] - Mr. Mak is responsible for the overall operation of the concrete demolition business, including tendering, work processing, quality control, and work safety supervision[128] Future Outlook - The Group aims to improve performance and enhance competitiveness in the market amidst ongoing challenges[17] - The daily number of confirmed COVID-19 cases shows a downward trend, and the Group believes the situation will improve with increased vaccination rates[17]
景联集团(01751) - 2021 - 年度财报