Financial Performance - The company's revenue decreased by approximately HKD 59.2 million or 13.6% from HKD 435.8 million in 2020 to HKD 376.6 million in 2021[9]. - The gross loss increased significantly to HKD 140.1 million in 2021, compared to a gross loss of HKD 25.6 million in 2020, resulting in a gross loss margin of 37.2%[12]. - The company reported a loss before tax of HKD 175.7 million for 2021, compared to a loss of HKD 48.5 million in 2020[9]. - The net loss for the year was HKD 187.5 million, up from a net loss of HKD 47.8 million in the previous year[9]. - The company recorded a revenue of approximately HKD 376.6 million for the year, a decrease of about 13.6% compared to HKD 435.8 million for the year ended December 31, 2020[18]. - The facade engineering business generated revenue of HKD 213.5 million, down from HKD 336.2 million, while the permanent suspended platform business saw a revenue increase of 63.7% to HKD 163.1 million[21]. - The company reported a gross loss of approximately HKD 180.2 million in the facade engineering business, compared to a gross loss of HKD 54.8 million in the previous year[22]. - The gross profit margin for the permanent suspended platform business decreased to approximately 24.6% from 29.3% due to competitive pricing pressures[22]. - Other income decreased significantly from approximately HKD 6.8 million to HKD 0.7 million, primarily due to the absence of government subsidies received in the previous year[25]. - The company incurred administrative expenses of approximately HKD 32.0 million, a slight increase of about HKD 2.0 million from HKD 30.0 million in the previous year, mainly due to increased employee benefits[27]. - The net loss for the year was attributed to various factors, including supply chain disruptions and increased material costs due to the ongoing impact of COVID-19[19]. - The company faced significant challenges in project execution and material delivery, leading to additional outsourcing costs and project delays[19]. - The overall market environment remains challenging, with ongoing impacts from the pandemic affecting construction timelines and material costs[18]. - Financial costs increased from HKD 0.2 million in the previous year to HKD 1.9 million, primarily due to an increase in borrowings[28]. - The company's total borrowings rose significantly to approximately HKD 49.3 million as of December 31, 2021, from HKD 5.3 million in the previous year[33]. - The debt-to-equity ratio increased dramatically to approximately 34.9% as of December 31, 2021, compared to 2.0% in the previous year[34]. - The company’s tax expenses amounted to approximately HKD 11.8 million for the year, compared to a tax credit of HKD 0.7 million in the previous year[29]. - The company’s cash and cash equivalents decreased to HKD 96.1 million as of December 31, 2021, from HKD 107.3 million in the previous year[31]. Business Strategy and Development - The company plans to adopt a more conservative bidding strategy in its operations to address the intense competition in the facade engineering business[13]. - The company aims to actively develop green energy businesses, including green building materials and renewable energy systems, through its joint venture Zhejiang Xinneng Zhonghe Technology Co., Ltd.[13]. - The company has signed its first supply contract for solar systems with a customer in Malaysia and is in the process of registering its own brand trademarks for solar and energy storage products in China, the US, and the EU[13]. - The company anticipates the need for additional fundraising to support operational expenditures for business growth[13]. - The company maintains a cautiously optimistic outlook for the construction industry in Hong Kong and seeks opportunities to enhance recurring revenue[14]. - The company acknowledges the support from shareholders, customers, suppliers, and employees during challenging times, aiming to restore sustainable profitability and long-term growth[15]. Corporate Governance - The company has adhered to the corporate governance code, with no deviations reported for the year[68]. - The company emphasizes the importance of independent directors in providing oversight and independent opinions to the board[56]. - The board consists of seven members, including four executive directors and three independent non-executive directors as of December 31, 2021[75]. - The company is committed to maintaining a diverse and experienced board to enhance governance and strategic decision-making[56]. - The board has delegated daily management and operational responsibilities to senior management while retaining overall leadership and strategic oversight[72]. - The company has established a risk management policy to address potential risks related to its business operations, including strategic, operational, and compliance risks[107]. - The board of directors believes that the company's risk management and internal control systems are adequate and effective, with annual reviews planned[108]. - The company has adopted a standard code for securities trading by directors, confirming compliance by all directors during the year[106]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific matters[72]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the company's performance and initiatives in environmental, social, and governance (ESG) aspects for the reporting period from January 1, 2021, to December 31, 2021[122]. - The company is committed to integrating sustainable business practices into its operations while adhering to the highest ethical standards[126]. - A comprehensive stakeholder survey was conducted in 2021 to identify significant ESG issues relevant to the company's operations[120]. - The company emphasizes the importance of stakeholder engagement to enhance its sustainable development performance[131]. - The board of directors oversees the management of ESG matters and is responsible for the company's ESG strategies and policies[125]. - The company is focused on continuous monitoring and improvement of its ESG performance, strategies, and goals[128]. - The company has established a comprehensive quality management system certified to ISO 9001:2015, ensuring compliance with quality standards and continuous improvement[151]. - The company has implemented a regulatory compliance and licensing management system to ensure business operations adhere to relevant laws and regulations[149]. - The company conducts regular compliance checks through audits, site inspections, and performance evaluations to maintain up-to-date compliance measures[149]. Employee and Workplace Management - The company has a total of 128 employees, all of whom are full-time staff from Hong Kong[169]. - Employee composition includes 77% male and 23% female, with 29% under 30 years old, 70% between 30 to 50 years old, and 1% over 51 years old[170][172]. - The company prioritizes employee development and training as part of its high-importance issues[142]. - The company provides appropriate training for employees to enhance the quality of work and services[157]. - The company has implemented a key performance indicator assessment scheme to enhance performance and operational efficiency[177]. - The company aims to maintain a high standard of occupational safety and health, adhering to applicable laws and regulations[183]. - Safety measures include regular inspections of equipment and safety assessments conducted weekly by senior safety supervisors[185]. - The total number of work-related deaths over the past three years remains at zero, with a work injury count of 3 in 2021, down from 7 in 2020[190]. - The total days lost due to work injuries decreased significantly to 231 days in 2021 from 1551 days in 2020 and 2121 days in 2019[190].
益美国际控股(01870) - 2021 - 年度财报