Financial Performance - Total revenue for the year ended December 31, 2021, decreased by 7.2% to approximately HKD 382.3 million from approximately HKD 411.9 million in the same period of 2020[6]. - The company achieved a net profit of approximately HKD 41.4 million, compared to a net loss of approximately HKD 429.5 million in the same period of 2020[6]. - The company reported a revenue decrease of approximately HKD 29.6 million or 7.2% to about HKD 382.3 million for the year ended December 31, 2021, compared to HKD 411.9 million in 2020[25]. - The company recorded a gross loss of approximately HKD 29.9 million for the year, compared to a gross loss of HKD 9.1 million in the previous year, resulting in a gross loss margin of 7.8%[26]. - The company incurred a net loss attributable to owners of approximately HKD 64.8 million for the year, compared to a net loss of HKD 60.1 million in 2020[25]. - The group recorded a profit of approximately HKD 106.3 million from discontinued operations, compared to a loss of HKD 369.4 million in 2020, mainly due to gains from the sale of subsidiaries[43]. - The group reported a profit attributable to owners of approximately HKD 40.1 million for the year, a significant improvement from a loss of HKD 245.0 million in 2020[43]. - The group recognized impairment losses of approximately HKD 1.5 million and HKD 1.6 million for trade receivables and contract assets, respectively, compared to HKD 123.2 million and HKD 6.1 million in 2020[37]. - The company confirmed an expected credit loss impairment of approximately HKD 2.9 million for the year, down from HKD 20.2 million in 2020[25]. - Other income for the year was approximately HKD 0.7 million, a decrease of about 89.8% from HKD 6.6 million in 2020, primarily due to one-time income from the Hong Kong Employment Support Scheme[27]. Business Operations and Strategy - The company terminated its construction consulting business and sold a subsidiary in February 2021 to consolidate its operations and enhance competitiveness in the construction industry[7]. - Following a change in control in April 2021, the company is restructuring its internal management to better utilize its management team's talents and market experience[7]. - The company plans to change its name to mark the new era following the change in control and will continue to seek business and investment opportunities for long-term growth[8]. - The construction division primarily provides contracting services for renovation, maintenance, specialized engineering, and new development projects in Hong Kong[13]. - The financial division, which provided financial information and technology services in China, ceased operations following the change in control[14]. - The company has terminated its financial division operations following the sale of subsidiaries, which will allow for more effective resource allocation[18]. - The company intends to conduct a detailed review of its existing operations and financial status to formulate sustainable business plans for future development[23]. - The company has no significant investment or capital asset plans as of December 31, 2021, but will continue to seek business and investment opportunities for long-term growth[53]. Shareholder and Corporate Governance - The company has undertaken a change in controlling shareholders, with Masterveyor Holdings Limited becoming the major shareholder as of April 26, 2021[15]. - The company has proposed a name change to FDB Holdings Limited, effective April 12, 2022, symbolizing a new era following the change in control[20]. - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the year ended December 31, 2021[99]. - The board consists of four members, including one executive director and three independent non-executive directors[101]. - The company has separated the roles of Chairman and CEO to ensure clear division of responsibilities and balanced power distribution[103]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, with their written terms of reference available on the stock exchange and the company's website[127]. - The Audit Committee consists of three independent non-executive directors, ensuring compliance with listing rules and corporate governance codes[128]. - The company has not identified any instances of non-compliance with the standards for securities trading by directors during the year ended December 31, 2021[100]. - The company has arranged appropriate insurance to protect directors and senior officers against legal actions arising from corporate activities[106]. Legal and Compliance Issues - The company is currently involved in a legal case regarding the sale of equity instruments measured at fair value through other comprehensive income, which is still ongoing[75]. - The company received a statutory demand for repayment of HKD 14,148,825 from Gentle Soar, claiming amounts paid to the company between August 15, 2018, and May 18, 2021[78]. - The High Court allowed the termination of legal proceedings related to the statutory demand after Gentle Soar withdrew the demand[80]. - Gentle Soar filed a winding-up petition against the company's subsidiary, claiming the same amount of HKD 14,148,825, which is not expected to have a significant negative impact on the group's overall financial and operational situation[83]. - The independent auditor's report for the year ended December 31, 2021, did not express an opinion on the consolidated financial statements due to insufficient audit evidence regarding certain receivables and tax liabilities[86]. - The company completed the sale of Shanghai Feiyu Group on March 30, 2021, which addressed the issues related to receivables and tax liabilities[87]. - The company believes that the issues leading to the auditor's disclaimer of opinion for 2021 have been satisfactorily resolved[96]. Environmental Performance - The company reported a significant reduction in emissions, with nitrogen oxides (NOx) dropping from 11.49 kg in 2020 to 0 kg in 2021, and sulfur oxides (SOx) decreasing from 0.21 kg to 0 kg[182]. - Total greenhouse gas emissions amounted to 264 tons of CO2 equivalent in 2021, a 59% increase in emissions from the construction division compared to the previous reporting period[185]. - The company has implemented strict monitoring to ensure compliance with environmental regulations, with no significant non-compliance incidents reported[176]. - The company aims to balance operational needs with environmental protection by using effective resources and reducing pollutants[179]. - The company has adopted ultra-low sulfur diesel for machinery and has prohibited open burning on all construction sites[177]. - The company’s environmental, social, and governance (ESG) policies are continuously developed and assessed to enhance stakeholder value[173]. - The company’s waste management practices comply with the Waste Disposal Ordinance, ensuring proper handling of construction site waste[186]. - The company has committed to using environmentally friendly cleaning energy and reusing materials to minimize waste[181]. - The total harmless waste generated in 2021 was 6,630 tons, a decrease of 18.5% from 8,130 tons in 2020[190]. - The amount of construction waste sent to landfill decreased from 1,292 tons in 2020 to 1,128 tons in 2021, a reduction of 12.7%[190]. Resource Management - The company has implemented measures to improve resource efficiency and reduce energy consumption in operations[192]. - Total electricity consumption increased significantly to 318,753 kWh in 2021 from 157,846 kWh in 2020, representing a 102.1% increase[195]. - Water consumption rose to 4,158 cubic meters in 2021 from 144.2 cubic meters in 2020, marking a substantial increase of 2,889.4%[195]. - The electricity density per employee per day increased to 7.66 kWh in 2021 from 2.177 kWh in 2020[195]. - The water density per employee per day increased to 0.1 cubic meters in 2021 from 0.060 cubic meters in 2020[195]. - The company has developed an environmental management system certified to ISO 14001 standards[198]. - The company continues to monitor and reduce its greenhouse gas emissions primarily from electricity and water consumption[199].
丰展控股(01826) - 2021 - 年度财报