Financial Performance - For the year ended December 31, 2021, the group recorded revenue of approximately HKD 293.9 million, an increase of about HKD 17.9 million or 6.5% compared to approximately HKD 276.0 million for the year ended December 31, 2020[10]. - The profit attributable to equity holders for the year was approximately HKD 27.8 million, a significant decrease of about HKD 11.5 million or 29.3% from approximately HKD 39.4 million for the previous year[10]. - The adjusted profit attributable to equity holders, after excluding listing and related expenses, was approximately HKD 38.3 million, an increase of about HKD 1.9 million or 5.1% compared to approximately HKD 36.5 million for the previous year[10]. - Total comprehensive income decreased significantly by approximately HKD 11.5 million or 29.3% to about HKD 27.8 million for the year ended December 31, 2021, primarily due to increased listing-related expenses and reduced government subsidies[24]. - Adjusted total comprehensive income (excluding listing-related expenses and government subsidies) increased by approximately HKD 1.9 million or 5.1% to about HKD 38.3 million for the year ended December 31, 2021[24]. Cash and Liquidity - As of December 31, 2021, the group's cash and bank balances were approximately HKD 119.4 million, an increase of about HKD 35.9 million or 43.0% from approximately HKD 83.5 million as of December 31, 2020[10]. - Cash and bank balances increased by approximately HKD 35.9 million or 43.0% to about HKD 119.4 million as of December 31, 2021, mainly from operating cash flow[27]. - Current ratio improved from approximately 4.6 times to about 5.7 times as of December 31, 2021, with net current assets increasing by approximately HKD 28.7 million[33]. - The debt-to-equity ratio decreased from approximately 0.3% to about 0.1% as of December 31, 2021, mainly due to an increase in equity attributable to shareholders[29]. Project and Operational Updates - The group primarily operates in the slope engineering sector in Hong Kong, with most of its revenue derived from public projects[10]. - The slope engineering industry in Hong Kong is gradually recovering from the impacts of the COVID-19 pandemic[10]. - The number of projects contributing to revenue increased from 28 in 2020 to 39 in 2021, with public projects rising from 16 to 19 and private projects from 12 to 20[18]. - The group completed 21 contracts with a total contract value of approximately HKD 548.2 million out of 39 contracts awarded, with 18 contracts still in progress valued at approximately HKD 475.2 million as of December 31, 2021[16]. - The group reported a total of 39 contracts awarded, with a total contract value of approximately HKD 1,023.4 million as of December 31, 2021[16]. Challenges and Outlook - The group anticipates that the fifth wave of the pandemic will continue at least until the second quarter of 2022, with a cautious outlook for business performance in 2022[13]. - Labor shortages and project delays were experienced due to COVID-19 infections among employees and the need for disinfection of work sites[13]. - The group faced significant delays in the certification process for projects due to remote working policies affecting the construction industry[12]. - The group is prepared to face more challenging times in 2022, with expectations of gradual improvement in business conditions[13]. - The group expects economic recovery and favorable government policies to increase demand for slope engineering projects, providing significant opportunities[13]. Governance and Management - The board of directors did not recommend the payment of any dividends for the year ended December 31, 2021, consistent with the previous year[44]. - The company has established credit policies to manage credit risk, with regular independent credit assessments of customers conducted by financial and administrative staff[37]. - The financial director is responsible for monitoring the overall liquidity requirements on a monthly basis to ensure financial commitments are met[37]. - The company has a comprehensive corporate governance policy in place, reviewed regularly by the board[88]. - The board consists of experienced members with diverse backgrounds in business management, finance, and legal matters, promoting gender diversity at all levels[114]. Environmental and Social Responsibility - The company aims to minimize any adverse environmental impacts from its business activities and has established an environmental management system compliant with ISO 14001:2015 standards since 2018[169]. - The company has implemented measures to ensure compliance with environmental regulations and has established processes for environmental protection[169]. - The company aims to reduce greenhouse gas emissions by 3% by 2026, using 2021 as the baseline year[183]. - The company has communicated its environmental policy to all employees, suppliers, and contractors to enhance environmental protection efforts[172]. - The company aims to provide a safe working environment and has policies in place to protect employees from occupational hazards[167].
丰城控股(02295) - 2021 - 年度财报