Financial Performance - Total revenue for 2022 was HKD 193,041,000, a decrease of 5.30% compared to HKD 203,849,000 in 2021[10] - EBITDA for 2022 was HKD 91,117,000, down 6.90% from HKD 97,872,000 in the previous year[10] - Net profit for the year was HKD 38,610,000, representing a decline of 26.02% from HKD 52,191,000 in 2021[10] - Cash and cash equivalents decreased by 41.97% to HKD 38,491,000 from HKD 66,329,000 in 2021[10] - Trade receivables increased significantly by 190.91% to HKD 480,000 from HKD 165,000 in the previous year[10] - Revenue from elder care services decreased from approximately HKD 151,891,000 to about HKD 145,144,000, a decline of about 4.44%[36] - Revenue from the Social Welfare Department's "Improvement Purchase Scheme" increased from approximately HKD 39,024,000 to about HKD 40,067,000, an increase of about 2.67%[37] - Average occupancy rate for "Improvement Purchase Scheme" elder care homes decreased from 92.26% to 87.49%[46] - Employee costs rose from approximately HKD 83,464,000 to about HKD 99,781,000, an increase of about 19.55%[47] - Revenue from sales of elder-related products and health services decreased from approximately HKD 51,958,000 to about HKD 47,897,000, a decline of about 7.82%[45] - Revenue from personal clients renting beds decreased from approximately HKD 107,488,000 to about HKD 99,991,000, a decline of about 6.98%[39] - Revenue from non-government organizations renting beds decreased from approximately HKD 620,000 to about HKD 281,000, a decline of about 54.68%[40] - Property rental and related expenses decreased from approximately HKD 18,540,000 to about HKD 13,638,000, a decline of about 26.44%[48] - The group recorded a profit of approximately HKD 38,610,000 for the year, down from approximately HKD 52,191,000 in the previous year, primarily due to increased costs related to manpower and epidemic prevention resources[49] - As of December 31, 2022, current assets were approximately HKD 90,530,000, compared to HKD 74,917,000 in the previous year, while current liabilities increased to approximately HKD 69,023,000 from HKD 53,244,000[54] - The group's total equity as of December 31, 2022, was approximately HKD 211,151,000, up from HKD 179,141,000 in the previous year[59] Corporate Governance - The company emphasizes the importance of good corporate governance for effective management, healthy corporate culture, sustainable business growth, and enhancing shareholder value[133] - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced skill set and experience[135] - The company has adopted the corporate governance code as per GEM listing rules, ensuring compliance and transparency[133] - The board regularly reviews its governance policies and believes in their effectiveness for the group[149] - The company encourages continuous professional development for all directors to ensure informed contributions to board discussions[151] - The board consists of seven male members and one female member, with a commitment to increase the proportion of female directors when suitable candidates are available[167] - The company employs 336 female members and 45 male members, reflecting the industry characteristics where most employees are female[167] - The audit committee confirmed that the consolidated financial statements fairly presented the group's financial position and performance for the year ended December 31, 2022[177] - The company has established three board committees: the audit committee, nomination committee, and remuneration committee to oversee specific matters[175] - The board diversity policy was adopted in March 2018, emphasizing the importance of diversity in maintaining competitive advantage[162] - The company has a clear division of responsibilities between the chairman and the CEO to ensure accountability and effective management[152] - The nomination committee evaluates candidates based on a set of criteria to ensure effective board composition[168] - The company has complied with corporate governance codes regarding the purchase of directors and officers liability insurance[159] - The board's structure, size, composition, and diversity were reviewed to ensure alignment with corporate governance standards[189] Strategic Plans and Operations - The occupancy rate of the group's elderly care homes is expected to gradually recover by mid-2023 after being affected by the pandemic[13] - The group plans to expand its elderly care services through new openings or mergers and acquisitions in Hong Kong[14] - A logistics support team has been established to enhance the group's response capabilities for future emergencies[13] - The group has been providing nursing support services at a quarantine center, which ceased operations in December 2022, impacting revenue[13] - Capital expenditures for the year were approximately HKD 22,654,000, significantly higher than HKD 3,255,000 in the previous year, used for the acquisition of properties, plants, and equipment for elderly care homes[70] - The capital-to-debt ratio increased to 19% as of December 31, 2022, from 15% in the previous year, due to the adoption of IFRS 16 related to lease liabilities[57] - The group did not hold any significant investments or have plans for major investments or capital assets as of December 31, 2022[61][62] - The group acquired a property for HKD 16,474,500, intended for office use, with the transaction exceeding 5% but less than 25% of applicable percentage ratios under GEM listing rules[82] Management and Personnel - The company has over 28 years of experience in planning, construction, daily management, and operation of elderly care homes[90] - The executive team includes three executive directors with extensive backgrounds in elderly care management and operations[91] - The company is actively involved in the recruitment, supervision, and management of healthcare personnel across all levels[98] - The CEO has accumulated over 21 years of experience in the management and operation of elderly care homes[99] - The non-executive director has extensive experience in financial planning, marketing, and international business[106] - Liu Yunpei has been appointed as the executive director and CEO of Huilong Holdings Limited since 2002, with previous roles in various listed companies[107] - Chen Zhengsen, appointed as an independent non-executive director in August 2022, has over 16 years of experience in finance and accounting, specializing in M&A and capital market transactions[112] - Liu Daqian, an independent non-executive director since June 2017, has over 30 years of legal practice experience and has served on the boards of multiple listed companies[114] - Huang Weihao, also an independent non-executive director since June 2017, has been involved in public affairs and has held various leadership roles in listed companies[121] - Liang Peishan and Zhu Jieying serve as joint company secretaries, with Liang having over 15 years of experience in audit and financial management[122][123] - The number of employees increased to 437 as of December 31, 2022, from 389 in the previous year, with enhanced compensation and benefits provided[71] Risk Management - The board established risk management and internal control policies, ensuring they are adequate and effective in managing significant risks[192] - The internal control system was reviewed annually, identifying areas for improvement and taking appropriate measures to manage related risks[193] - The audit committee monitored the resources and qualifications of the accounting and financial reporting functions, ensuring compliance with corporate governance codes[182] - The company has no internal audit department; however, the executive directors and management are responsible for reviewing the effectiveness of the internal control system[192] - The nomination committee is responsible for assessing the independence of independent non-executive directors and making recommendations for their reappointment[184] Dividend Policy - The board proposed a final dividend of HKD 0.10 per ordinary share, totaling HKD 40,000,000, compared to no dividend in the previous year[60] - The company has adopted a dividend policy to balance shareholder returns and maintain sufficient liquidity for future growth opportunities[199] - The board will consider applicable laws, regulations, and any restrictions in the company's articles of association when determining dividend payments[200] - The dividend policy will be reviewed periodically and can be updated or amended at the board's discretion[200]
恒智控股(08405) - 2022 - 年度财报