Financial Performance - The group's total revenue decreased by approximately HKD 19.2 million or 11.1% to about HKD 154.3 million for the year ended December 31, 2021, compared to approximately HKD 173.5 million for the previous year[8]. - Revenue decreased from approximately HKD 173.5 million for the year ended December 31, 2020, to approximately HKD 154.3 million for the year ended December 31, 2021, a decline of about 11.1% due to project delays caused by COVID-19[17]. - Gross profit decreased from approximately HKD 22.8 million to approximately HKD 17.1 million, with the overall gross margin slightly declining from about 13.1% to approximately 11.1%[19]. - The company recognized a loss of approximately HKD 42.6 million for the year ended December 31, 2021, compared to a loss of about HKD 2.3 million for the year ended December 31, 2020[27]. - Current ratio decreased from approximately 1.6 times to 1.3 times, while the debt-to-equity ratio increased from about 44.3% to approximately 55.9% due to increased borrowings[28]. - The company’s distributable reserves as of December 31, 2021, amounted to approximately HKD 64.2 million, an increase from HKD 54.0 million in 2020[188]. Project and Market Activity - A total of 172 projects generated revenue for the group during the year ended December 31, 2021, compared to 173 projects in 2020[12]. - The group secured 88 new projects with a total contract value of approximately HKD 95.4 million as of December 31, 2021[12]. - The demand for FM4A and corrosion protection engineering services remained stable as of the reporting date[12]. - The overall market conditions in the Hong Kong construction industry remained relatively stable, despite increased economic uncertainties and the negative impacts of COVID-19[9]. Cost Management - Cost of sales decreased from approximately HKD 150.7 million to approximately HKD 137.2 million, a reduction of about 9.0%, primarily due to decreased subcontracting and material costs[18]. - Administrative expenses decreased by approximately HKD 3.2 million or 10.6% to about HKD 27.1 million, mainly due to reduced employee costs[20]. - Employee costs for the year ended December 31, 2021, were approximately HKD 36.7 million, down from approximately HKD 46.1 million in 2020[40]. Corporate Governance - The board of directors consists of seven members, including two executive directors and three independent non-executive directors[51]. - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, to enhance corporate governance[80]. - The Audit Committee consists of three independent non-executive directors, ensuring compliance with GEM listing rules and overseeing the integrity of financial reports[84]. - The company encourages directors to participate in relevant seminars and external training programs to enhance their knowledge and skills[80]. - The company adheres to a rotation policy for directors, requiring one-third of the board to retire at each annual general meeting, ensuring regular re-election[79]. Risk Management - The company has implemented a risk management framework integrated into daily operations, ensuring compliance with relevant laws and regulations[102]. - The company aims to identify and manage risks at an acceptable safety level to achieve strategic goals, employing a three-tier risk management approach[103]. - The company emphasizes the importance of risk management practices to mitigate operational and financial risks[158]. Shareholder Relations - The company has established multiple channels for communication with shareholders and investors, including annual general meetings and a dedicated website[120]. - The company is committed to ensuring shareholder rights are protected through independent resolutions presented at general meetings[112]. - The company aims to retain sufficient reserves for future growth while allowing shareholders to participate in profits through its dividend policy[164]. Strategic Direction - The group aims to continue providing integrated services in RMAA, new construction projects, and corrosion protection engineering to retain existing clients and attract new ones[9]. - The group plans to leverage its competitive advantages to respond effectively to changing client needs[9]. - The company is committed to sustainability, with plans to implement eco-friendly practices that could reduce operational costs by F%[135]. - The company is exploring partnerships to enhance its service offerings and expand its customer base, aiming for a J% increase in market penetration[136]. Employee and Management - The group employed a total of 131 staff, an increase from 126 staff in 2020[40]. - The management team includes professionals with extensive backgrounds in construction and project management, ensuring strong operational oversight[142][144]. - The company recognizes employees as valuable assets and aims to attract and retain suitable personnel[163]. Acquisitions and Investments - The company completed the acquisition of Treasure Mark Global Limited for HKD 24.0 million, with goodwill generated from the acquisition amounting to HKD 50.9 million[22][24]. - The group acquired Treasure Mark Global Limited, which primarily engages in RMAA engineering and new construction projects, during the year ended December 31, 2021[36]. Compliance and Reporting - The company is committed to maintaining compliance with GEM listing rules, ensuring transparency and governance[140]. - The financial reporting team is led by experienced professionals, including members from reputable accounting firms[138].
圣唐控股(08305) - 2021 - 年度财报