Financial Performance - In 2022, the company's revenue increased compared to 2021, primarily due to the growth in natural gas business revenue, especially in the first half of 2022, and the full-year contribution from the biomass gasification heating business[12]. - The company reported a loss for 2022 but is optimistic about future performance improvements[12]. - The total revenue for the year ended December 31, 2022, was approximately HKD 184,683,000, representing an increase of about 30.5% compared to HKD 141,544,000 in the previous year[20]. - The group reported a pre-tax loss of approximately HKD 8,311,000 for the year, an increase from a loss of HKD 4,794,000 in the previous year, attributed to rising operational expenses in several segments[20]. - As of December 31, 2022, the group's net assets were approximately HKD 335,418,000, down from HKD 366,193,000 in the previous year, with total assets of about HKD 738,521,000[23]. Business Segments - The clean energy business is currently the core business and will continue to be so in the future, with ongoing efforts to expand market share and seek growth opportunities[13]. - The natural gas distribution and property investment businesses are less affected by the COVID-19 pandemic due to their reliance on domestic demand and the necessity of natural gas as a resource[13]. - The biomass gasification heating business is a relatively new energy sector in China, and the company is optimistic about its development prospects[10]. - The natural gas business remains the core segment, benefiting from increased demand for clean energy in China, supported by government policies encouraging the use of natural gas[17]. - The biomass gasification heating business in Huaining County, Anhui Province, is expected to generate significant revenue, although it reported a loss in 2022 due to incomplete construction and operations[18]. Investments and Growth Opportunities - The company aims to become a leading clean energy operator in several cities and regions in China[13]. - The company will continue to explore potential investment opportunities to enhance shareholder value[13]. - The company is developing a new biomass gasification heating facility in Huaining County, Anhui Province, which is expected to grow due to high demand for thermal energy in the region[10]. - The collaboration with Beijing Jingneng Clean Energy Power Co., Ltd. for natural gas facility construction is progressing as planned, with expectations for the combined heat and power project to contribute positively soon[9]. Corporate Governance - The company has established an audit committee to enhance accountability and independence, despite not having a designated CEO, which deviates from the corporate governance code[41]. - The company has a diverse board with members possessing extensive experience in finance, management, and the energy sector, contributing to effective governance[49][50][51]. - The board emphasizes the importance of maintaining good relationships with suppliers and customers to achieve corporate goals, regularly communicating to build confidence in the company's prospects[128]. - The board has established a remuneration committee composed solely of independent non-executive directors, which held one meeting during the review year[157]. - The independent non-executive directors have served the company for over 9 years, and their future reappointments will comply with independence standards[152]. Shareholder Communication and Rights - The company aims to provide high levels of disclosure and financial transparency to shareholders through its website and the Stock Exchange[183]. - The board emphasizes the importance of communication with shareholders and encourages attendance at general meetings for dialogue[183]. - The company has established a shareholder communication policy to ensure effective communication and timely access to information[186]. - The board has implemented measures to protect shareholder rights, including independent resolutions for significant issues at general meetings[185]. Risk Management and Internal Controls - The company has adopted a robust internal control system to safeguard assets and ensure reliable financial reporting[171]. - The risk management system is designed to manage, rather than eliminate, risks that may hinder the achievement of business objectives[172]. - The board believes that the risk management and internal control systems are effective and adequately resourced[177]. - The internal control system is reviewed annually to ensure its effectiveness[180]. - The audit committee held four meetings during the review year to monitor the financial reporting system and internal controls[161]. Employee Compensation and Development - The total employee compensation for the year was approximately HKD 20,855,000, with a workforce of 151 full-time employees across Hong Kong and China[35]. - The company offers competitive compensation to attract and motivate employees, with regular reviews and stock options for outstanding performers[126]. - All directors have participated in continuous professional development to enhance their knowledge and skills, ensuring informed contributions to the board[146]. Environmental Commitment - The company is committed to environmental sustainability and adheres to environmental laws and regulations, focusing on resource efficiency, energy conservation, and waste reduction[124]. - The company has maintained compliance with all relevant laws and regulations without any significant violations during the review year[125]. Audit and Financial Reporting - The financial statements have been audited by a reputable firm, with no changes in auditors over the past three years[134]. - The independent auditor confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2022[192]. - The audit committee reviewed the annual report and financial statements, ensuring compliance with applicable accounting standards[163]. - The external auditor's fees for audit services amounted to approximately HKD 1,280,000 for the year ended December 31, 2022, consistent with the previous year[170].
中国基础能源(08117) - 2022 - 年度财报