Financial Performance - Total revenue for the year ended December 31, 2021, was HKD 203.849 million, a decrease of approximately 0.58% from HKD 205.038 million in 2020[8]. - EBITDA for the same period was HKD 97.872 million, reflecting a decline of about 2.84% compared to HKD 100.733 million in the previous year[8]. - Net profit for the year was HKD 52.191 million, down 1.31% from HKD 52.883 million in 2020[8]. - Cash and cash equivalents decreased by 22.80% to HKD 66.329 million from HKD 85.914 million in 2020[8]. - Trade receivables fell by 13.61% to HKD 165,000 from HKD 191,000 in the previous year[8]. - The net asset value decreased by 8.71% to HKD 179.141 million from HKD 196.230 million in 2020[8]. - The company's revenue for the reporting year was approximately HKD 203,849,000, a slight decrease of 0.58% from the previous year's revenue of approximately HKD 205,038,000[25]. - The net profit for the year was approximately HKD 52,191,000, down about 1.31% from approximately HKD 52,883,000 in the previous year[40]. - Revenue from elder care services provided to individual clients decreased by approximately 3.72%, from HKD 111,646,000 to HKD 107,488,000[32]. - Revenue from day care services under the Improvement Purchase Scheme increased by approximately 68.52%, from HKD 2,824,000 to HKD 4,759,000[31]. - The average occupancy rate for Improvement Purchase Scheme elder care homes was 92.26%, down from 93.54% in the previous year[37]. - Employee costs increased by approximately 10.79%, rising from HKD 75,338,000 to HKD 83,464,000 due to hiring more staff for health and personal care services[38]. - Property rental and related expenses rose by approximately 7.27%, from HKD 17,284,000 to HKD 18,540,000[39]. - As of December 31, 2021, current assets were approximately HKD 85,093,000, down from HKD 102,311,000 in 2020[42]. - Current liabilities as of December 31, 2021, were approximately HKD 53,244,000, compared to HKD 51,319,000 in 2020[42]. - Total cash and bank balances were approximately HKD 66,329,000 as of December 31, 2021, down from HKD 85,914,000 in 2020[42]. - The capital-to-debt ratio increased to 15% as of December 31, 2021, from 10% in 2020 due to the adoption of IFRS 16[43]. - Total equity was approximately HKD 179,141,000 as of December 31, 2021, compared to HKD 196,230,000 in 2020[44]. - No final dividend was proposed for the reporting year, compared to HKD 32,000,000 in 2020[44]. - Capital expenditures for the reporting year were approximately HKD 3,255,000, down from HKD 3,901,000 in 2020[50]. Business Strategy and Operations - The company plans to focus on expanding its elderly care services in Hong Kong through new openings or mergers and acquisitions[13]. - The company has started providing health and personal care services for quarantine elderly homes, generating additional revenue and valuable experience[12]. - The company aims to enhance its facilities and increase participation in the Social Welfare Department's improvement programs, ensuring operational stability[12]. - The company believes that the impact of the pandemic on its main business is temporary and expects to return to normal operations post-pandemic[12]. - The company plans to expand its elder care home network in Hong Kong to meet the increasing demand due to the aging population[20]. - The company aims to optimize existing resources and enhance employee training while implementing cost control measures[25]. - The revenue from sales of elder-related products and health services increased by approximately 1.13%, from HKD 51,376,000 to HKD 51,958,000[37]. Corporate Governance - The company is focused on corporate governance and has established various committees to oversee audit, remuneration, and nominations[76][84]. - The independent non-executive directors bring extensive legal and financial expertise, contributing to the company's compliance and strategic direction[81][83]. - The company emphasizes the importance of independent directors in maintaining transparency and accountability in its operations[80][83]. - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced skill set and experience[93]. - The board maintained a high level of independence, with over one-third of its members being independent non-executive directors, who exercised independent judgment[93]. - The company adopted and complied with the corporate governance code as per GEM Listing Rules Appendix 15 during the reporting year[91]. - The board held at least four meetings annually, with additional meetings convened as necessary, promoting an open culture for discussion[99]. - The company has established a code of conduct for securities trading by directors, ensuring compliance with GEM Listing Rules[92]. - The board's primary role includes planning corporate strategy and policies, monitoring financial and operational performance, and reviewing the effectiveness of internal control systems[102]. - The company seeks independent professional advice when fulfilling its responsibilities, with costs borne by the company[105]. - The company provided quarterly consolidated financial statements to the board, detailing performance, condition, and outlook[107]. - Each executive director has a service contract with an initial fixed term of three years, subject to renewal with three months' written notice[111]. - The board diversity policy was adopted on March 20, 2018, emphasizing the importance of diversity for maintaining competitive advantage[115]. - The board consists of seven male members and one female member, with a commitment to increase female representation when suitable candidates are available[120]. - The company has established three board committees: Audit Committee, Nomination Committee, and Remuneration Committee, to oversee specific matters[125]. - The board's diversity includes members with experience in various fields such as management, governance, accounting, and social work[119]. - The company ensures compliance with corporate governance codes regarding insurance for directors and senior management against legal claims[112]. - The nomination policy was adopted on January 18, 2019, to evaluate candidates for board appointments based on various criteria including skills and experience[121]. - The board has implemented a continuous professional development program for directors to enhance their knowledge and skills[108]. - The company regularly reviews its nomination policy to ensure effectiveness and compliance with regulatory requirements[124]. Audit and Risk Management - The audit committee has reviewed the financial statements for the year ending December 31, 2021, ensuring they are prepared in accordance with applicable accounting standards and fairly present the group's financial position and performance[128]. - The audit committee held four meetings during the reporting year to discuss the effectiveness of accounting principles and practices adopted by the group[127]. - The audit committee is responsible for reviewing the group's risk management and internal control systems, ensuring they are adequate and effective[127]. - The audit committee confirmed the independence of the external auditor, Ernst & Young, and approved their engagement terms for the reporting year[131]. - The audit committee has the authority to investigate any matters within its scope and can obtain independent professional advice when necessary[129]. - The company has adopted a risk management and internal control system that is deemed sufficient and effective by the board, covering operational, management, legal, governance, financial, and audit aspects[139]. - The board reviews the internal control system annually, identifying areas for improvement and taking appropriate measures to manage related risks[142]. - The company has no internal audit department; however, the executive directors and management are responsible for reviewing the effectiveness of the internal control system[139]. Environmental, Social, and Governance (ESG) - The company has established a governance structure for environmental, social, and governance (ESG) matters, ensuring alignment with business strategies and effective risk management[166]. - The ESG working group is responsible for collecting and analyzing ESG data, monitoring performance, and ensuring compliance with relevant laws and regulations[167]. - The report covers the company's ESG activities, challenges, and measures taken during the fiscal year ending December 31, 2021[170]. - The company emphasizes the importance of sustainability as a core part of its business strategy, believing it is key to future success[165]. - The company has set relevant targets for significant issues such as greenhouse gas emissions, waste management, energy management, and water management to enhance its commitment to corporate social responsibility[175]. - The company has not experienced any significant violations of environmental laws and regulations during the reporting period, including those related to air pollution and waste disposal[184]. - The company aims to enhance its ESG performance by strengthening communication with stakeholders to better understand their expectations for sustainable development[175]. - The company has developed an environmental policy and waste management measures to prevent environmental pollution and conserve resources during its operations[184]. - The company will regularly review the progress of its ESG targets through the working group to ensure adequate measures and resources are in place[175]. - The company is committed to sustainable development and aims to integrate sustainability into its business operations to enhance long-term value[175]. - The company has identified key ESG issues through a systematic annual materiality assessment involving stakeholder feedback[180]. Emissions and Waste Management - The total greenhouse gas emissions increased by approximately 10.77% during the reporting period, primarily due to additional health and personal care services provided to users in quarantine elderly homes[187]. - Direct greenhouse gas emissions (Scope 1) amounted to 48.51 tons of CO2 equivalent in 2021, up from 31.05 tons in 2020[187]. - Indirect greenhouse gas emissions (Scope 2) totaled 1,750.86 tons of CO2 equivalent in 2021, compared to 1,561.99 tons in 2020[187]. - The total greenhouse gas emissions (Scope 1 and 2) reached 1,799.37 tons of CO2 equivalent in 2021, an increase from 1,593.04 tons in 2020[187]. - The total greenhouse gas emissions density was 4.63 tons of CO2 equivalent per employee in 2021, up from 4.18 tons in 2020[187]. - The company aims to reduce total greenhouse gas emissions density by 2% over the next five years, using 2021 as the baseline year[187]. - The total harmless waste generated was approximately 1,236.40 tons in 2021, a decrease of about 12.88% from 1,389.92 tons in 2020[194]. - The harmless waste density per employee decreased from approximately 3.65 tons in 2020 to about 3.18 tons in 2021[194]. - The company produced approximately 0.16 tons of hazardous waste in 2021, down from 0.21 tons in 2020, resulting in a density reduction of about 33.33%[199]. - The company has set a target to reduce total harmless waste emissions density by 2% over the next five years, using 2021 as the baseline year[193].
恒智控股(08405) - 2021 - 年度财报