Financial Performance - Total revenue for the year ended December 31, 2021, was approximately HKD 233.8 million, a decrease of about 40.0% from HKD 389.9 million in 2020[20] - The company reported a net loss of approximately HKD 76.7 million for the year, a slight decrease of 2.5% compared to a loss of HKD 78.7 million in 2020[20] - Basic loss per share for the year was HKD 4.7 cents, compared to HKD 4.2 cents in 2020, reflecting an increase of 11.9%[7] - The company did not recommend any final dividend for the year, consistent with the previous year[18] - The company recorded a pre-tax gain of approximately HKD 23.5 million from the sale of Star Petrotech, which is now a wholly-owned subsidiary of Baikin Huizhou[22] - The company reported an operating loss of approximately HKD 80.6 million for the year, an increase of about 51.5% from an operating loss of HKD 53.2 million in the previous year[70] Revenue Breakdown - Revenue from enhanced oil recovery services decreased significantly by approximately 57.8% due to project delays in the southwest region of China[20] - Revenue from drilling services decreased by about 16.0% as the company ceased providing services to a private enterprise in northwest China[20] - Revenue from the Chinese market decreased by approximately 44.1% from HKD 332.8 million in 2020 to HKD 186.1 million in 2021, primarily due to reduced production services provided to clients[27] - Revenue from overseas markets decreased by approximately 16.5% from HKD 57.1 million in 2020 to HKD 47.7 million in 2021, mainly due to reduced production services and project management services in the Middle East[28] - Revenue from the Middle East decreased by approximately 5.2% from HKD 36.2 million in 2020 to HKD 34.3 million in 2021, attributed to reduced production services provided to a client in the region[33] - Revenue from other overseas regions decreased by approximately 35.9% from HKD 20.9 million in 2020 to HKD 13.4 million in 2021, mainly due to decreased sales of completion tools[34] - In 2021, the revenue from oilfield project tools and services was approximately HKD 199.0 million, a decrease of about HKD 140.5 million (or 41.4%) compared to 2020's HKD 339.5 million[37] - Revenue from consulting services in 2021 was approximately HKD 28.1 million, down by about HKD 15.6 million (or 35.7%) from HKD 43.7 million in 2020[37] - Revenue from the increase production services was approximately HKD 99.6 million in 2021, a significant decrease of about HKD 136.3 million (or 57.8%) from HKD 235.9 million in 2020[45] - The revenue from drilling services was approximately HKD 28.8 million in 2021, a decrease of about HKD 5.5 million (or 16.0%) compared to HKD 34.3 million in 2020[41] - Revenue from completion services increased slightly to HKD 70.6 million in 2021, up by about HKD 1.3 million (or 1.9%) from HKD 69.3 million in 2020[43] Assets and Liabilities - Total assets decreased by 29.7% to HKD 716.49 million in 2021 from HKD 1,018.69 million in 2020[5] - The company’s total liabilities decreased by 35.9% to HKD 425.81 million in 2021 from HKD 664.27 million in 2020[5] - The current ratio improved to 1.11 in 2021 from 0.94 in 2020, indicating better short-term financial health[8] - The group's property, plant, and equipment amounted to approximately HKD 157.6 million, a decrease of about HKD 174.8 million (or approximately 52.6%) compared to HKD 332.4 million on December 31, 2020, primarily due to the sale of Baikin Huizhou and its subsidiaries[75] - The group's intangible assets, including goodwill, were approximately HKD 85.7 million as of December 31, 2021, a decrease of about 10.4% or HKD 10.0 million from HKD 95.7 million on December 31, 2020, mainly due to a goodwill impairment loss of approximately HKD 9.8 million[78] - The group's cash and cash equivalents were approximately HKD 26.5 million as of December 31, 2021, a decrease of about HKD 3.1 million from HKD 29.6 million on December 31, 2020[91] - The group's total bank and other borrowings were approximately HKD 185.3 million as of December 31, 2021, down from HKD 327.2 million on December 31, 2020, with about 62.1% due within one year[91] - The group's inventory decreased to approximately HKD 24.3 million as of December 31, 2021, a reduction of about HKD 34.6 million (or approximately 58.7%) from HKD 58.9 million on December 31, 2020[82] - The group's trade receivables were approximately HKD 185.0 million as of December 31, 2021, a decrease of about HKD 55.8 million (or approximately 23.2%) from HKD 240.8 million on December 31, 2020[84] - The group's contract assets were approximately HKD 23.7 million as of December 31, 2021, a decrease of about HKD 94.8 million (or approximately 80.0%) from HKD 118.5 million on December 31, 2020[85] - The group's asset-liability ratio was approximately 35.5% as of December 31, 2021, down from 47.3% in 2020[93] - The group's trade payables were approximately HKD 158.6 million as of December 31, 2021, a decrease of about HKD 14.3 million (or approximately 8.3%) from HKD 172.9 million on December 31, 2020[86] Employee and Operational Metrics - The company had a total of 213 employees as of December 31, 2021, a decrease of approximately 46.1% from 395 employees at the end of the previous year[54] - Employee benefits expenses were approximately HKD 62.1 million, a decrease of about 13.8% from HKD 72.0 million in the previous year, attributed to a reduction in employee numbers following the sale of subsidiaries[59] - The total employee turnover rate for the reporting period was 9.39%, with 20 employees leaving the company[169] - 77% of employees received training during the reporting period, totaling 7,273 hours, with an average of 34 hours per employee[183] - The group provides competitive compensation and benefits, including social insurance, paid leave, and annual bonuses based on the length of employment[164] - The group has a total of 134 suppliers, with the majority of goods and services sourced from suppliers in mainland China[192] Environmental, Social, and Governance (ESG) Initiatives - The group received recognition as a high-tech enterprise from various Shenzhen authorities during the reporting period[115] - The group is committed to achieving zero work injuries and zero accidents as part of its operational strategy[112] - The board plans to establish an ESG task force to oversee the implementation of ESG policies[114] - The group emphasizes strict compliance with applicable laws and industry standards to ensure product quality and safety[112] - Key environmental issues identified by stakeholders include energy, emissions, and climate change[109] - The group has obtained multiple certifications, including ISO 14001 for environmental management and ISO 45001 for occupational health and safety[115] - The group engages with stakeholders through monthly meetings and regular surveys to assess important ESG issues[101] - The group integrates social, environmental, and governance considerations into its daily operations[111] - The group achieved a total greenhouse gas emission of 165.71 tons of CO2 equivalent during the reporting period, with a density of 0.14 tons of CO2 equivalent per square meter[122] - Direct emissions (Scope 1) accounted for 60% of total emissions, primarily from gasoline usage, totaling 99.88 tons of CO2 equivalent[124] - The total energy consumption for the group was 377,370 kWh, with a density of 314.68 kWh per square meter and 2.11 MWh per employee[136] - Gasoline represented 88.2% of the total energy consumption, while electricity accounted for 11.8%[138] - The group generated 0.0 tons of hazardous waste during the reporting period, a significant reduction from 3.64 tons in 2020[126] - Non-hazardous waste produced was 2 tons, down from 124.22 tons in 2020, with a density of 1.67 kg per square meter[129] - The group has set a target to reduce total emissions by 10% by the fiscal year 2031[130] - The group implemented various air pollution control measures, including regular monitoring and maintenance of production facilities[130] - The group encourages employees to use public transportation and low-emission vehicles to reduce vehicle emissions[131] - The group actively promotes waste reduction measures, such as double-sided printing and electronic documentation[133] - The total water consumption of the group during the reporting period was 106 cubic meters, with a significant decrease in energy consumption density to 0.59 cubic meters per employee or 0.08 cubic meters per square meter compared to the previous reporting period's density of 0.86 cubic meters per square meter[140][146]. - The group has implemented various measures to optimize energy usage, including setting air conditioning to a preset temperature of 26°C during summer to save energy[143]. - The group has installed water-saving faucets in its Shenzhen office and has not encountered any issues in procuring water resources during the reporting period[144]. - The group is aware of climate change risks and reports annually to senior management on these risks, with strategies in place to mitigate them[148]. - The group aims to improve management and technology levels to enhance operational efficiency and competitiveness while exploring new clean energy technologies[151]. - The group has taken measures to monitor greenhouse gas emissions and set reduction policies to minimize environmental impact[152]. - The group has not received complaints regarding air pollution, odors, noise, or other environmental pollution incidents from surrounding communities during the reporting period[146]. Health and Safety - The company has achieved ISO 45001 certification for occupational health and safety management systems[174] - There were no reported fatalities due to work-related incidents in the last three reporting years, with only one work injury incident occurring during the reporting period[179] - The company provided earplugs to employees exposed to noise hazards, and noise levels were compliant with the industrial noise emission standards[178] - All frontline workers are required to wear personal protective equipment (PPE) during work hours[176] - The company has implemented a health and safety management program to identify and assess occupational hazards[175] - The company has established a pandemic response team to manage COVID-19 prevention measures and ensure employee safety[179] Quality Management - The group has implemented ISO 9001 quality management system since 2006 to ensure consistent and reliable production processes[194] - The group has a robust product inspection and testing system to ensure product safety and reliability[196] - There were no complaints received during the reporting period, and no product recalls due to safety and health reasons[198] - The group has established policies for product recalls and customer complaints, ensuring corrective actions are taken when necessary[198] - The group actively reviews and updates its quality management system in response to market changes[196] - The group has not encountered any violations of labor laws or regulations during the reporting period[187] - The group emphasizes data protection and has implemented management procedures to ensure network security and data confidentiality[199] - The group collaborates closely with suppliers to optimize supply chain management and create sustainable relationships[192]
百勤油服(02178) - 2021 - 年度财报