Financial Performance - For the Financial Year 2022, the Group's revenue decreased by approximately HK$26 million to approximately HK$75.7 million, compared to approximately HK$101.7 million for the Financial Year 2021[12]. - The Group recorded a net loss of approximately HK$9.0 million in the Financial Year 2022, an improvement from a net loss of HK$41.0 million in the Financial Year 2021[12]. - The significant decrease in loss was mainly due to a substantial reduction in cost of sales in the Financial Year 2022[12]. - The Group's revenue for the Financial Year 2022 was approximately HK$75.7 million, representing a decrease of approximately 25.6% from approximately HK$101.7 million in the Financial Year 2021[28]. - The Group recorded a gross profit of approximately HK$16.7 million in the Financial Year 2022, with a gross profit margin of 22.1%, compared to a gross loss of HK$13.9 million and a gross loss margin of 13.7% in the Financial Year 2021[29]. - Administrative and other operating expenses decreased by approximately HK$4.8 million, representing a decrease of approximately 16.1%, to approximately HK$25.1 million in the Financial Year 2022[30]. - The net loss decreased by approximately HK$32.0 million to approximately HK$9.0 million in the Financial Year 2022, representing a decrease of approximately 78.0% compared to approximately HK$41.0 million in the Financial Year 2021[32]. Financial Position - As of 31 December 2022, the Group's current ratio was approximately 0.9, down from approximately 1.0 as of 31 December 2021[37]. - The Group had total assets of approximately HK$60.8 million, financed by total liabilities of approximately HK$52.5 million and shareholders' equity of approximately HK$8.3 million[37]. - The gearing ratio as of 31 December 2022 was approximately 286.7%, significantly up from 115.2% as of 31 December 2021[38]. - Capital expenditure during the Financial Year 2022 was approximately HK$0.1 million, a significant decrease from HK$10.5 million in the Financial Year 2021[39]. - The Group recognized approximately HK$1.8 million in impairment losses on financial assets and contract assets for the Financial Year 2022, compared to a reversal of impairment losses of approximately HK$5.4 million in the Financial Year 2021[31]. - There were no capital commitments or significant contingent liabilities reported as of December 31, 2022[72][73]. - Pledged deposits of approximately HK$14.6 million have been made to banks to secure banking facilities[74]. - The Group's right-of-use assets with a carrying amount of approximately HK$2.9 million were used to secure lease liabilities of approximately HK$2.6 million[75]. Operational Challenges and Outlook - The outlook for 2023 anticipates ongoing challenges, but the Group remains optimistic and will strengthen cost control measures and resource management[13]. - The availability of construction and civil engineering projects in Hong Kong and Macau significantly impacts the Group's operational results, influenced by economic conditions and government policies[54]. - The Group's financial performance may be adversely affected by cost overruns and delays in project schedules, which can lead to increased subcontracting fees and reduced revenue[56]. - The construction industry in Hong Kong and Macau is facing a labor shortage, which has been driving up daily wages for workers in the concrete demolition sector[59]. Human Resources - The Group had 85 full-time employees as of December 31, 2022, down from 100 in the previous year, with staff costs amounting to approximately HK$36.6 million compared to HK$73.3 million in 2021[70]. - The Group's management team includes members with extensive educational backgrounds in accounting and engineering, enhancing the company's strategic capabilities[135]. - The Group emphasizes safety and quality training, with key personnel holding relevant certifications in construction safety and management[146][155]. - The Group's commitment to professional development is reflected in its management team's continuous education and certifications[143][149]. - The Group aims to leverage its experienced workforce to drive growth and enhance customer relationships in the construction sector[150]. Governance and Compliance - The Company has complied with the Corporate Governance Code during the Financial Year 2022, with a noted deviation regarding the roles of chairman and chief executive being held by the same individual[87][92]. - The Audit Committee reviewed the Group's consolidated financial statements for the Financial Year 2022, confirming compliance with applicable accounting standards and adequate disclosures[86]. - The Company has established three functional committees: the Audit Committee, the Nomination Committee, and the Remuneration Committee, to assist the Board in discharging its duties[193]. - The Audit Committee's primary duties include reviewing financial statements and overseeing internal control systems[194]. - The Company confirmed that all Directors fully complied with the required standard of dealings set out in the Code of Conduct during the Financial Year 2022[190]. - The Company has adopted the Model Code for securities transactions by Directors as its Code of Conduct[190]. Management Team - Mr. Cheung has over 30 years of experience in the concrete demolition industry[108]. - Mr. Kwok is responsible for overall corporate strategy and business development[105]. - Mr. Chow has more than 14 years of experience in accounting and auditing[115]. - Mr. Chow has held various financial management positions in listed companies[115]. - Mr. Chan has a diverse educational background including a Master of Philosophy in Town Planning[117]. - Mr. Chow is currently an independent non-executive director of China Hongbao Holdings Limited[115]. - Mr. Kwok has solid experience in securities and investment, particularly in Hong Kong's primary market[105]. - Mr. Cheung has been with the Group since its establishment in 1985[108]. - Mr. Kwok holds multiple advanced degrees including a Master of Laws in International Economic Law[106]. - Mr. Chow has served as an independent non-executive director for multiple listed companies[115]. - Mr. Chan has served as an independent non-executive director of S&T Holdings since August 2019, providing independent judgment on strategy and performance[123]. - Mr. Tam has over 30 years of professional accounting experience and has been an independent non-executive director since May 2020, responsible for independent judgment on strategy and resources[126]. - Mr. Mak, the chief technical officer, has over 30 years of experience in the construction industry and oversees the concrete demolition business operations[133]. - The company has a strong focus on quality control and work safety supervision in its concrete demolition operations[133]. - Mr. Mak has been with the company since July 1996, indicating a long-term commitment to the organization[133]. - The Group has a strong management team with diverse backgrounds in finance, construction, and administration, enhancing operational efficiency[141]. - The Group's strategic planning includes expanding its market presence and improving operational capabilities through experienced personnel[142][145]. Shareholder Relations - The Board did not recommend the payment of a final dividend to shareholders for the Financial Year 2022[97][101]. - The Company has not segregated the roles of chairman and chief executive officer, believing it to be in the best interest of the Group for effective management[161]. - The Board consists of five Directors, including two executive Directors and three independent non-executive Directors, ensuring a strong independent element to provide independent judgement[170][171]. - The Board held four meetings and one annual general meeting during the Financial Year 2022, demonstrating active governance and oversight[183].
景联集团(01751) - 2022 - 年度财报