Financial Performance - The revenue from wet trades works and related ancillary works amounted to approximately HK$122.5 million, representing an increase of approximately HK$5.1 million or 4.3% compared to HK$117.5 million in 2021[18]. - The gross loss reported for the year was approximately HK$28.6 million, primarily due to competitive project pricing, delays in certification of works, and increased direct costs[18]. - The Group's revenue increased by approximately HK$5.1 million or approximately 4.3%, from approximately HK$117.5 million for the year ended 31 December 2021 to approximately HK$122.5 million for the Year[45]. - The gross loss for the Year was approximately HK$28.6 million, a decrease of approximately 54.9% compared to HK$63.5 million for the year ended 31 December 2021, with a gross loss margin improving to approximately 23.4% from 54.0%[50]. - Other income and losses resulted in a net loss of approximately HK$1.7 million, a decrease of approximately 1,014.2% compared to a net loss of approximately HK$190,000 for the previous year, mainly due to a one-off loss on disposals of property, plant, and equipment[47]. - The net loss attributable to owners of the Company decreased by approximately HK$27.0 million or 32.4% to approximately HK$56.2 million for the Year, driven by improved gross loss margin[55]. Operational Challenges - The Group incurred additional costs for safe management measures on site due to COVID-19, impacting operational efficiencies and project completion[23]. - The outlook for the industry remains difficult, with economic uncertainties potentially affecting short-term performance[23]. - The construction industry in Hong Kong remains challenged due to COVID-19-related restrictions, impacting cash flows and project timelines[39]. - The Group's profit margin for new projects is under pressure due to high competition in the Hong Kong construction industry[39]. - The Group's gross profit margin is affected by competitive project pricing, which impacts overall financial performance[39]. Strategic Initiatives - The Group has been exploring business opportunities beyond the Hong Kong market to enhance future development and strengthen revenue bases[24]. - The Group aims to diversify its business to provide better returns to shareholders[24]. - The Group aims to diversify its business and expand beyond the Hong Kong market to enhance future development and shareholder returns[26]. - The Group established an online platform to assist customers in reviewing contractor payment requests, leveraging its expertise in passive wet trade payment request information technology solutions[41]. - The Group will continue to monitor market conditions closely and respond to changes to maintain its market share in the wet trades works industry[40]. Financial Position - As of 31 December 2022, the original contract sum of ongoing projects amounted to approximately HK$280.2 million, and HK$289.3 million as of the report date[32]. - The Group is currently bidding for six projects with an estimated total contract sum of approximately HK$319.2 million[32]. - As of 31 December 2022, the Group had total bank balances of approximately HK$14.0 million, an increase from approximately HK$9.6 million as of 31 December 2021[57]. - The total borrowings of the Group decreased to approximately HK$9.7 million from approximately HK$16.3 million, with all borrowings denominated in Hong Kong dollars[57]. - The gearing ratio as of December 31, 2022, was approximately 9.3%, a decrease from 11.2% as of December 31, 2021[71]. Shareholder Information - The Board resolved not to recommend the declaration of a final dividend for the year[88]. - The Company has adopted a dividend policy to allow shareholders to participate in profits while retaining adequate reserves for future growth[151]. - The Board will consider the general financial condition, capital and debt levels, and future cash requirements when proposing dividends[155]. - As of December 31, 2022, Mr. Adam Cheung holds a long position of 1,950,000,000 shares, representing 62.5% of the company's shareholding[179]. - Wonderful Renown Limited, which is 84% owned by Mr. Adam Cheung, is the direct shareholder of the 1,950,000,000 shares[181]. Corporate Governance - All independent non-executive Directors confirmed their independence under the Listing Rules[148]. - The Company has arranged for insurance coverage for Directors' and officers' liabilities arising from corporate activities[174]. - Each executive Director has a service contract with a term of three years, while independent non-executive Directors have a one-year appointment[149]. - No early termination of Directors' appointments occurred during the year, and no termination benefits were provided[160]. - The independent non-executive Directors reviewed compliance with non-competition undertakings and confirmed no breaches[168].
恒新丰控股(01920) - 2022 - 年度财报