Financial Performance - The group recorded revenue of approximately HKD 382.8 million for the fiscal year 2022, a decrease of about HKD 20.4 million or 5.1% compared to HKD 403.2 million in fiscal year 2021[12]. - The gross profit increased to approximately HKD 97.5 million in fiscal year 2022, representing a rise of about HKD 4.6 million or 5.0% from approximately HKD 92.9 million in fiscal year 2021, with a gross margin of 25.5%[16]. - The group's profit for the fiscal year 2022 reached approximately HKD 43.4 million, an increase of about HKD 6.6 million or 17.9% compared to approximately HKD 36.8 million in 2021[19]. - Total revenue for the year 2022 was HKD 382,786,000, a decrease of 5.3% from HKD 403,211,000 in 2021[150]. - Gross profit increased to HKD 97,538,000, up 5.8% from HKD 92,862,000 in the previous year[150]. - Net profit for the year was HKD 43,404,000, representing a growth of 17.6% compared to HKD 36,800,000 in 2021[150]. - Basic and diluted earnings per share rose to HKD 4.3, an increase of 16.2% from HKD 3.7 in the prior year[150]. Cash Flow and Financial Position - The group's cash and cash equivalents balance as of December 31, 2022, was approximately HKD 38.8 million, a decrease of about HKD 49.5 million from approximately HKD 88.3 million in 2021[24]. - The company experienced a decrease in cash and cash equivalents, ending the year with HKD 38,826,000, down from HKD 88,319,000 at the start of the year[160]. - Operating cash flow for the year was HKD 120,810,000, a significant improvement from a cash outflow of HKD 50,333,000 in the previous year[159]. - The company’s revenue from operating activities showed a significant increase, with a cash inflow of HKD 129,644,000 compared to a cash outflow in the previous year[159]. - The company’s financing activities resulted in a net cash outflow of HKD 30,536,000, compared to a smaller outflow of HKD 5,464,000 in the previous year[160]. - The company reported a decrease in trade and other payables, resulting in a cash inflow of HKD 17,770,000 in the previous year, which turned into a cash outflow of HKD 11,830,000 in the current year[159]. Contracts and Business Operations - The group secured contracts worth HKD 967.0 million, ensuring sufficient cash flow for daily operations and business growth[7]. - The group has an estimated contract balance of HKD 523.6 million for key projects as of December 31, 2022[13]. - The group aims to maintain project profitability through stringent cost control measures implemented during fiscal year 2022[7]. - The group has received two platform facade contracts post-fiscal year 2022, with a total contract value of approximately HKD 388.1 million[13]. - The company’s main business involves providing one-stop design and construction solutions for facade and curtain wall engineering in Hong Kong[74]. Expenses and Taxation - The administrative and other operating expenses increased to approximately HKD 49.4 million in fiscal year 2022, up by about HKD 1.5 million or 3.1% from approximately HKD 47.9 million in fiscal year 2021[17]. - The income tax expense for the group was approximately HKD 8.4 million in fiscal year 2022, with an effective tax rate of about 16.2%[18]. - The total employee benefit expenses for the fiscal year 2022 amounted to approximately HKD 67.6 million, an increase from HKD 64.8 million in 2021[34]. Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with it during the fiscal year 2022, except for the provision regarding the separation of roles between the Chairman and the CEO[46]. - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence in its composition[46]. - All directors confirmed compliance with the standard code for securities trading during the fiscal year 2022[47]. - The audit committee reviewed the financial reporting procedures and internal control systems, meeting with management and external auditors to discuss key audit matters and the audit results for the fiscal year 2022[57]. - The board has established four committees to oversee specific functions, with independent non-executive directors actively participating in all committee meetings[56]. - The company emphasizes the importance of board diversity to support its strategic goals and sustainable development[54]. - The board currently consists of five male and one female director, with plans to enhance gender balance in future appointments[55]. Risk Management - The risk management committee conducted a risk assessment in 2022, identifying key risks recorded in a risk register for ongoing monitoring and control[64]. - The company has adopted a policy and procedural manual for internal controls and risk management compliance across various operational functions[65]. - The board believes that the risk management and internal control systems are effective and adequate, although they cannot eliminate all risks associated with achieving business objectives[65]. - The company has not established an internal audit department but has procedures in place to ensure adequate resources for internal audit functions[64]. Shareholder Information - The proposed final dividend for fiscal year 2022 is HKD 0.018 per share[8]. - The group reported a final dividend of HKD 0.018 per share, totaling HKD 18 million, with a dividend payout ratio of approximately 41.5%[76]. - The company has a dividend policy aimed at sharing profits with shareholders while retaining sufficient reserves for future growth[108]. - The company declared a total dividend of HKD 16,500,000 for the year, compared to HKD 11,000,000 in the previous year[160]. Financial Reporting and Audit - The consolidated financial statements for the fiscal year 2022 were audited by a reputable accounting firm, which is eligible for reappointment[115]. - The company reported a comprehensive financial position as of December 31, 2022, reflecting a fair and true representation of its financial status[130]. - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[130]. - The audit aimed to reasonably ensure that the consolidated financial statements are free from material misstatement due to fraud or error[142]. - The audit committee assists the board in overseeing the financial reporting process[141]. Market Position and Client Relationships - The group maintained stable relationships with major clients, many of whom have been partners for over 15 years[37]. - The five largest customers accounted for approximately 97.0% of the total revenue, with the largest single customer contributing 44.8%[107]. - The five largest suppliers represented about 48.9% of total procurement, with the largest single supplier accounting for 13.5%[107]. Internal Controls and Management - The company’s management team is responsible for the execution of strategies and policies, while the board leads and supervises the overall business[48]. - The company has committed to continuous professional development for its directors to enhance their knowledge and skills[51]. - The audit committee has met with internal control consultants to review the internal control systems for specific areas during the fiscal year 2022[57]. - The company has established a strong management team with a diverse skill set, enhancing its operational capabilities and market competitiveness[126].
信越控股(06038) - 2022 - 年度财报