Financial Performance - The Group reported a revenue of approximately HK$118.5 million for FY2022, representing an increase of 19.7% compared to approximately HK$99.0 million for FY2021[16]. - Revenue from concrete demolition services increased by 23.7% from approximately HK$56.1 million in FY2021 to approximately HK$69.4 million in FY2022[17]. - Revenue from prefabricated construction rose by 15.0% from approximately HK$42.8 million in FY2021 to approximately HK$49.2 million in FY2022[17]. - The Group recorded a net loss of approximately HK$2.7 million for FY2022, a decrease of 92.7% from a net loss of approximately HK$37.2 million in FY2021[18]. - Basic loss per share for FY2022 was HK1.02 cents, compared to HK3.65 cents for FY2021[18]. - Revenue increased by approximately HK$19.5 million or 19.7% from approximately HK$99.0 million for FY2021 to approximately HK$118.5 million for the Reporting Period[42]. - Revenue from concrete demolition services was approximately HK$69.4 million, representing an increase of approximately HK$13.3 million or 23.7% compared to FY2021[45]. - Revenue from prefabricated construction was approximately HK$49.2 million, representing an increase of approximately HK$6.4 million or 15.0% compared to FY2021[48]. - Gross profit increased by approximately HK$10.8 million or 43.9% from approximately HK$24.6 million for FY2021 to approximately HK$35.4 million for the Reporting Period[50]. - Gross profit margin increased from 24.9% for FY2021 to 29.9% for the Reporting Period[51]. - Other income and other gains, net, increased by approximately HK$6.6 million from approximately HK$1.9 million for FY2021 to approximately HK$8.5 million for the Reporting Period[52]. - Impairment losses on various assets decreased by HK$17.3 million from approximately HK$21.9 million for FY2021 to approximately HK$4.6 million for the Reporting Period[53]. - Administrative and other operating expenses decreased by approximately HK$0.4 million from approximately HK$36.3 million for FY2021 to approximately HK$35.9 million for the Reporting Period[58]. - The Group's loss attributable to owners of the Company was approximately HK$10.3 million for the Reporting Period, representing a decrease of approximately HK$26.5 million compared to a loss of HK$36.8 million for FY2021[59]. Market Outlook and Expansion - The Company anticipates a gradual return to normalcy in Hong Kong's economy following the relaxation of pandemic control measures[19]. - The Hong Kong government plans to create more land and invest in infrastructure projects, which the Company believes will enhance its competitiveness in the construction demolition industry[19]. - The Group's concrete demolition services revenue increased by 23.7% in FY2022 due to the post-pandemic rebound in Hong Kong[22]. - Revenue from the prefabricated construction business recorded a growth of 15.0% for FY2022, marking two consecutive years of double-digit growth[24]. - The Group plans to expand its prefabricated construction business into overseas markets, particularly in countries along the Belt and Road[25]. - The prefabricated construction business is expected to generate enormous potential demand during the urbanization process in China[26]. - The market diversification plan for overseas expansion is currently on hold due to tight market liquidity in China and Hong Kong[25]. - The Group continues to maintain a positive long-term outlook on the prefabricated construction business despite current market challenges[26]. Corporate Governance - The Board of Directors includes Mr. Liu Yingjie as Chairman and Ms. Zhou Jin as Executive Directors, along with independent non-executive Directors Mr. Cao Hongmin, Mr. Chan Chi Pan, and Mr. Li Kar Fai, Peter[108]. - The Company complied with the GEM Listing Rules throughout the year ended December 31, 2022, specifically under Rule 5.05(1) and Rule 5.05A[108]. - The Board has established mechanisms to ensure independent views and input are available, which will be reviewed annually for effectiveness[110]. - The Company has received positive confirmations from all independent non-executive Directors regarding their independence under the GEM Listing Rules[109]. - The management is delegated authority and responsibility by the Board for the administration of the Group, ensuring effective governance[106]. - The Board is committed to upholding good corporate governance standards for the best interest of the Company's shareholders[99]. - The Company has been actively monitoring compliance with legal and regulatory requirements as part of its governance practices[107]. - The Board held 7 meetings and 1 general meeting during the reporting period, with all executive directors attending all board meetings[113]. - The Company has established an Audit Committee, which comprises three members, including Mr. Li Kar Fai Peter as Chairman, ensuring compliance with GEM Listing Rules[128]. - All Directors confirmed full compliance with the required standard of dealings regarding securities transactions throughout the reporting period[117]. - The Company has adopted a policy to reimburse Directors for training costs related to corporate governance and internal control[123]. - The Board is committed to ensuring that independent non-executive directors (INEDs) have opportunities to express their views and inputs[112]. - The Company has established three functional committees: Audit Committee, Nomination Committee, and Remuneration Committee, to assist the Board in discharging its duties[126]. - The Audit Committee must have a minimum of three members, with at least one having appropriate professional qualifications in accounting or related financial management[128]. - The Company complied with the requirement under Rule 5.28 of the GEM Listing Rules throughout the year ended December 31, 2022[129]. - The Board ensures the appointment of at least three INEDs, with at least one-third of its members being INEDs[111]. - The Group encourages Directors to attend relevant training courses to stay updated on corporate governance practices[120]. Risk Management - The Company has established a risk management policy to identify, evaluate, and manage principal risks affecting the business[188]. - Each division is responsible for identifying and managing risks, with quarterly assessments and mitigation plans in place[194]. - The Board is responsible for reviewing and approving the effectiveness of the Group's risk management and internal controls[194]. - The Company does not have an internal audit department and has engaged an external consultant for internal control reviews[190]. - The Group's risk management and internal control system is designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[195]. - The Board is responsible for maintaining adequate resources, staff qualifications, training programs, and budget for accounting and financial reporting, concluding that the risk management system is effective[195]. - Directors acknowledge their responsibility for preparing financial statements that reflect a true and fair view of the Group's affairs, in compliance with relevant accounting standards and GEM Listing Rules[197]. - There are no uncertainties that may cast significant doubt on the Company's ability to continue as a going concern, according to the Directors[198]. - The Group has adopted a policy for the disclosure of inside information to ensure compliance with confidentiality requirements and disclosure obligations[196]. Employee and Workforce - The Group employed 98 staff as of December 31, 2022, down from 124 staff in 2021, with total employee costs amounting to approximately HK$41.0 million[79]. - The Group's employee salary and benefit levels are competitive, which is crucial due to the labor shortage in the construction industry[80]. - The gender ratio in the workforce is approximately 4:1 (male to female), reflecting the construction industry's challenges in attracting female talent[168]. - The Company has achieved its gender diversity goals under the Board Diversity Policy for FY2022[171]. Financial Position - As at 31 December 2022, the Group had cash and bank deposits of approximately HK$36.3 million[60]. - As of December 31, 2022, the Group's total borrowings amounted to approximately HK$76.2 million, an increase from approximately HK$64.3 million in 2021[69]. - The annual interest rates of the borrowings during the reporting period ranged from 4.2% to 12.0% per annum, compared to 6.75% to 12.0% per annum in 2021[69]. - The Group's borrowings of HK$46.9 million are repayable within one year, classified as current liabilities, while HK$29.3 million are repayable over one year, classified as non-current liabilities[69]. - The Group reported no material contingent liabilities as of December 31, 2022, consistent with 2021[78]. - The Group does not have any material capital commitments as of December 31, 2022, similar to 2021[70]. - The Group does not recommend payment of a final dividend for the reporting period, consistent with 2021[81]. - The Group has no specific plans for material investments or capital assets as of December 31, 2022[71]. - The auditor's remuneration for the audit of financial statements for the year ended 31 December 2021 was HK$728,000[179].
朝威控股(08059) - 2022 - 年度财报