Environmental Impact - In 2022, the total general waste generated was 711 tons, a significant increase from 2.1 tons in 2021[4] - Greenhouse gas emissions (Scope 1) decreased to 346 tons of CO2 equivalent in 2022 from 369 tons in 2021[4] - Greenhouse gas emissions (Scope 2) increased to 2,672 tons of CO2 equivalent in 2022, up from 1,695 tons in 2021, attributed to increased electricity consumption due to new toll plazas and pandemic control stations[4][9] - Total energy consumption rose to 6,111,348 kWh in 2022, compared to 4,438,682 kWh in 2021[13] - Electricity consumption increased to 4,685,039 kWh in 2022 from 2,917,577 kWh in 2021[13] - Water consumption increased to 81,821 cubic meters in 2022, up from 61,720 cubic meters in 2021[13] - The company implemented various energy-saving measures, including replacing high mast lights with LED lights to reduce energy consumption[6] - The company has developed emergency plans to mitigate climate change risks, including flood and snow removal plans[19] - The company is committed to reducing carbon emissions through the use of more energy-efficient lighting and vehicles[19] Financial Performance - For the year ended December 31, 2022, the company recorded revenue of approximately RMB 409,900,000, a decrease of 40.5% compared to the previous year[35] - The annual profit was approximately RMB 86,900,000, down about 35.3% from RMB 134,300,000 for the year ended December 31, 2021 (restated)[35] - Revenue from liquor sales was approximately RMB 341,100,000, a decrease of about 43.1% from RMB 599,600,000 for the year ended December 31, 2021 (restated)[43] - The gross profit margin for the Qingping Expressway was approximately 20.5%, down from 30.8% for the year ended December 31, 2021 (restated), primarily due to a sharp decline in toll revenue caused by the pandemic[44] - The group's total revenue for the year ended December 31, 2022, decreased to approximately RMB 409.9 million, with a profit of about RMB 86.9 million, representing a decline of approximately 35.3% compared to the previous year[64][74] - The toll revenue from the Qingping Expressway for the year ended December 31, 2022, was approximately RMB 68.8 million, a decrease of 22.6% from approximately RMB 88.9 million in the previous year[67] - The group's gross profit for the year ended December 31, 2022, was approximately RMB 119.7 million, down 42.6% from approximately RMB 208.4 million in the previous year, resulting in a gross margin of 29.2%[68] - Administrative expenses for the year ended December 31, 2022, were approximately RMB 38.7 million, a decrease of 46.6% from approximately RMB 72.4 million in the previous year[71] - The group plans to focus on expanding its liquor trade business following the sale of the Suiyue Expressway business, which will become one of its most important business segments[60][85] - The group is actively seeking opportunities in other promising business areas and infrastructure projects in China as part of its strategic plan[61] Employee and Labor Relations - The total number of full-time employees as of December 31, 2022, was 451, with a turnover rate of 17.3%[47] - As of December 31, 2022, the total employee compensation expense was approximately RMB 53,700,000, a decrease of 39.4% from RMB 88,500,000 in 2021[1] - The company adheres to local labor laws and has established policies for employee recruitment, compensation, and welfare[23] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance as of December 31, 2022[141] - The board of directors has achieved gender diversity with one female executive director, Liu Baohua, contributing to a diverse skill set and experience[145] - The audit committee is responsible for recommending the appointment and remuneration of external auditors, ensuring their independence and the integrity of financial reporting[159] - The remuneration committee, established in May 2009, consists of three members, including independent non-executive director Hu Liege as chairman[160] - The company has a policy for board member diversity, focusing on skills, experience, and diverse perspectives to ensure effective governance[155] - The executive director and CEO, Fu Jiepin, is directly responsible for the daily operations and financial performance of the group[147] - Independent non-executive directors provide constructive opinions on strategy, policy, and performance, enhancing accountability and resource management[145] - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence[145] - The board members are required to retire by rotation at least once every three years during the annual general meeting[149] - The company has established a service contract for directors with an initial term of three years, allowing termination with a three-month notice[148] - The remuneration committee reviewed and approved the compensation for directors and senior management for the year ending December 31, 2022[166] Risk Management and Internal Control - The company has established a risk management and internal control system to ensure the reliability of financial reporting and compliance with applicable laws and regulations[169] - The internal audit plan has been approved by the board, which includes an annual review of the risk management and internal control system[171] - The board recognizes its overall responsibility for the group's risk management and internal control systems, continuously reviewing their effectiveness[192] - The internal audit department, composed of professionals such as practicing accountants, operates independently from the group's daily operations to assess risk management and internal control systems[195] - The group has complied with the corporate governance code regarding risk management and internal control systems for the year ended December 31, 2022[194] - The group has established a risk management framework that includes key areas such as accounting, internal audit, and financial reporting personnel resources[194] Shareholder Communication - The board emphasizes the importance of clear, timely, and effective communication with shareholders and investors to build confidence and attract new investments[198] - The company maintains high transparency by providing accurate, clear, and timely information through annual reports, interim reports, and announcements[198] - Voting at the company's shareholder meetings is conducted by share count, with procedures explained at the start of each meeting[199] - The board regularly communicates with institutional investors and analysts to inform them about the group's strategies, operations, management, and plans[198] - The board considers the effectiveness of the shareholder communication policy during the review process[198] Future Outlook - The easing of COVID-19 restrictions in December 2022 by the Chinese government brings optimism for economic recovery in 2023 and beyond[35] - In the first quarter of 2023, traffic volume and toll revenue for the Qingping Expressway significantly increased due to the recovery and growth of economic activities in Shenzhen[117] - The liquor trading business also saw a substantial improvement in Q1 2023, with the company expressing confidence in the post-COVID performance of this segment[117] - The company plans to arrange more sales and marketing activities, including wine tasting events and promotional meetings, to enhance brand presence for Huamao and Xijiu[117] - The company is considering pursuing other infrastructure projects in China when suitable opportunities arise, as well as expanding its liquor business through potential acquisitions[118] - The company aims to explore opportunities in other promising commercial sectors as favorable conditions present themselves[118] - The company reported a significant decrease in revenue and profit for the year ending December 31, 2022, due to challenges from the COVID-19 pandemic, rising oil prices, and increasing interest rates[137] - However, with the easing of restrictions and economic recovery in early 2023, the company has quickly returned to normal operations in Q1 2023[137] - The company will leverage its successful experience in completing other toll highway projects in China to seek investment opportunities aligned with its overall business strategy[139]
华昱高速(01823) - 2022 - 年度财报