Financial Performance - The group recorded an increase in revenue during the reporting period, driven by heightened demand for cleaning services due to COVID-19 pandemic measures[8]. - The company's revenue increased by approximately 26.2% from HKD 765.9 million in the year ended December 31, 2021, to about HKD 966.3 million in the year ended December 31, 2022[18]. - The service costs rose by approximately 27.3% to about HKD 918.5 million, representing about 95.0% of the total revenue for the year ended December 31, 2022[25]. - The gross profit increased by approximately 7.3% to about HKD 47.8 million, with a gross profit margin of 5.0%, down from 5.8% in the previous year[27][28]. - The company recorded other income of approximately HKD 10.5 million, a significant increase from HKD 0.5 million in the previous year, primarily due to government subsidies related to COVID-19[29]. - Profit attributable to shareholders for the reporting period was approximately HKD 20.3 million, significantly up from HKD 5.4 million for the year ended December 31, 2021[32]. Operational Challenges - The company faced challenges such as labor shortages and high operating costs, particularly in insurance, labor, and vehicle expenses[8]. - The company aims to enhance operational efficiency and control costs while improving internal monitoring and financial conditions[9]. Business Growth and Opportunities - The group successfully secured additional service contracts, particularly from the Hong Kong government, contributing to business growth during the reporting period[8]. - The group is actively exploring business opportunities in mainland China and Southeast Asia, having obtained the necessary qualifications to enter the mainland market[11]. - The company aims to secure more tender contracts from government departments and private institutions that currently do not use its services[15]. - The company plans to enhance its capabilities by investing in vehicles, cleaning machines, and equipment to expand its business and take on more projects[14]. Industry Outlook - The company anticipates a recovery in the global and local economy post-COVID-19, remaining vigilant to the pandemic's impact on operations and finances[11]. - The group is optimistic about the prospects of the environmental hygiene services industry due to increasing public awareness of hygiene and health[11]. - The company remains optimistic about the future of the environmental hygiene services industry due to increasing public awareness and demand for services[17]. Employee and Workforce - The workforce increased to 3,853 employees as of December 31, 2022, compared to 2,231 employees in the previous year[20]. - The employee composition for 2022 shows a total of 3,853 employees, with 44% male and 56% female, compared to 46% male and 54% female in 2021[194]. - The employee turnover rate is reported at 32% for males and 31% for females, indicating a need for improved retention strategies[199]. - The average training hours for employees were 20 hours for directors, 15 hours for management, and 2 hours for regular employees[163]. Corporate Governance - The board of directors consists of executive and independent non-executive members, with no significant relationships among them[55]. - The company has established a remuneration committee to review the remuneration policy based on the group's operating performance and market practices[89]. - The audit committee consists of three independent non-executive directors, ensuring independent oversight of financial reporting and risk management[113]. - The company has maintained effective corporate governance policies, which have been reviewed and deemed effective by the board[107]. - The company has complied with all applicable corporate governance codes during the reporting period[100]. Environmental, Social, and Governance (ESG) Initiatives - The company reported its environmental, social, and governance (ESG) performance for the fiscal year ending December 31, 2022, focusing on sustainability initiatives[142]. - The company aims to integrate environmental practices into all business services to maintain social sustainability[145]. - The company has established an ESG working group to develop policies and actions, ensuring compliance with relevant laws and regulations[151]. - The company is committed to improving workplace health and safety through training and adherence to safety regulations[147]. - The company has implemented a risk management framework to monitor risks associated with achieving strategic goals, including ESG-related risks[152]. - The company emphasizes transparency and accuracy in reporting ESG performance, adhering to the GEM listing rules[143]. - The company has committed to ISO 14001 standards to minimize environmental pollution in daily operations[147]. Environmental Performance - The company achieved a 3% reduction in absolute greenhouse gas emissions compared to the previous fiscal year[163]. - Waste paper generated decreased by 9% year-on-year[163]. - Electricity consumption and density both reduced by 8%[163]. - Diesel consumption decreased by 3%[163]. - The company’s fleet consists of over 90% EU5 standard vehicles, significantly reducing sulfur dioxide emissions by 80%[168]. - Nitrogen oxides (NOx) emissions decreased from 28,529 kg in the previous year to 26,496 kg[168]. - Sulfur oxides (SOx) emissions slightly decreased from 44 kg to 43 kg[168]. - Particulate matter (PM) emissions reduced from 2,172 kg to 2,123 kg[168]. - The company continues to implement measures to reduce vehicle emissions through efficient delivery planning[169]. - The company aims to limit and reduce greenhouse gas emissions intensity to the 2022 level by 2030, focusing on energy efficiency and carbon reduction measures[172]. - The company is committed to addressing climate change risks by incorporating climate risk factors into its business strategy planning[186].
立高控股(08472) - 2022 - 年度财报