Financial Performance - Total revenue for the year ended December 31, 2023, decreased to approximately HKD 5,445.6 million, down from HKD 6,409.4 million for the year ended December 31, 2022[2] - Gross profit increased to approximately HKD 306.0 million for the year ended December 31, 2023, compared to HKD 256.5 million for the year ended December 31, 2022[2] - Profit attributable to equity holders of the company for the year ended December 31, 2023, was approximately HKD 71.9 million, slightly down from HKD 72.1 million for the year ended December 31, 2022[2] - Total comprehensive income for the year ended December 31, 2023, was HKD 62.1 million, compared to HKD 37.4 million for the year ended December 31, 2022[5] - The company reported a basic and diluted earnings per share of HKD 0.1438 for the year ended December 31, 2023, compared to HKD 0.1442 for the year ended December 31, 2022[4] - The net profit for the year ending December 31, 2022, was revised to HKD 72,940 thousand, compared to the previously reported HKD 56,532 thousand, representing a growth of approximately 28.98%[14] - The group recorded a net profit of HKD 72,225,000 for the year, slightly down from HKD 72,940,000 in 2022, a decrease of 1%[34] - Net profit decreased by approximately HKD 0.7 million or 1.0% to about HKD 72.2 million, with net profit margin rising from 1.1% to 1.3%[89] Assets and Liabilities - Non-current assets increased to HKD 353.7 million as of December 31, 2023, from HKD 274.7 million as of December 31, 2022[7] - Current assets rose to HKD 3,777.7 million as of December 31, 2023, compared to HKD 3,300.3 million as of December 31, 2022[7] - Total liabilities increased to HKD 3,403.2 million as of December 31, 2023, from HKD 2,681.6 million as of December 31, 2022[7] - Total assets as of December 31, 2023, amounted to HKD 4,131,355,000, an increase from HKD 3,574,979,000 in 2022[36] - Total liabilities increased to HKD 3,496,506,000 from HKD 2,741,224,000, marking a rise of 27.6%[36] - The total equity after the acquisition was revised to HKD 833,755 thousand, up from HKD 569,092 thousand, reflecting a significant increase of approximately 46.5%[19] Dividends - The board proposed a final dividend of HKD 0.018 per share, totaling approximately HKD 9.0 million[2] - The company plans to maintain a final dividend of HKD 1.8 cents per share, unchanged from the previous year[53] - The board proposed a final dividend of HKD 0.018 per share for the reporting period, consistent with the previous year[108] Acquisitions - The acquisition of Zhejiang Construction Environmental Engineering Co., Ltd. was completed on May 8, 2023, for a consideration of approximately HKD 228.4 million[11] - The acquisition of Zhejiang Construction Environmental Group has been accounted for under the merger accounting principles, impacting the consolidated financial statements for the years ending December 31, 2023, and December 31, 2022[12] - The group completed the acquisition of Zhejiang Construction Environmental Protection for a consideration of RMB 201 million (approximately HKD 228.4 million) on May 8, 2023, enhancing its capabilities in wastewater and recycled water treatment services[94] Revenue Segments - The construction segment generated revenue of HKD 5,231,681,000, down from HKD 6,266,589,000, representing a decline of 16.5%[34] - The environmental segment reported revenue of HKD 213,879,000, an increase of 49.8% from HKD 142,840,000 in the previous year[34] - Revenue from building construction projects decreased by approximately HKD 292.3 million or 5.9% to about HKD 4,703.0 million due to reduced income from new and existing projects[75] - Revenue from RMAA projects decreased by approximately HKD 742.6 million or 58.4% to about HKD 528.7 million, primarily due to existing projects nearing completion[76] - Revenue from environmental business increased by approximately HKD 71.1 million or 49.8% to about HKD 213.9 million, driven by new projects and existing services[77] Expenses - Administrative expenses increased from approximately HKD 150.4 million to about HKD 173.0 million, mainly due to higher employee costs and R&D expenses[85] - Financing costs increased from approximately HKD 20.3 million to about HKD 52.6 million, attributed to rising interbank rates and additional borrowings[87] - Income tax expenses increased by approximately HKD 3.8 million or 42.7% to about HKD 12.7 million, mainly due to the utilization of tax losses in the previous year[88] Employee and Talent Management - As of December 31, 2023, the group had a total of 906 employees, an increase from 883 employees as of December 31, 2022, with total employee costs (excluding directors' remuneration) amounting to approximately HKD 464.7 million, up from HKD 419.0 million in 2022[91] - The company plans to strengthen the use of labor import programs to address the shortage of technical talent in the construction industry[72] Financial Reporting and Governance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards[23] - The group adopted new and revised Hong Kong Financial Reporting Standards during the year, including HKFRS 17 on insurance contracts[28] - The company has adhered to the corporate governance code since its listing and will continue to review its governance practices[112] - The audit committee, chaired by an independent non-executive director, oversees the appointment and remuneration of external auditors and monitors financial reporting[116] - The company’s auditor confirmed that the preliminary announcement of the consolidated financial statements aligns with the figures in the annual financial report[117] Future Outlook and Projects - The company has 44 ongoing projects with a total original contract value of approximately HKD 27.5 billion as of December 31, 2023[65] - During the reporting period, the company secured 15 new projects with an original contract value of approximately HKD 6 billion and completed 19 projects valued at approximately HKD 4.3 billion[65] - The company has been awarded 4 new projects post-December 31, 2023, including 3 building construction contracts valued at approximately HKD 96.4 million and 1 RMAA contract valued at approximately HKD 599 million[69] Risk Management - The group continues to monitor foreign exchange risks closely, given its operations in multiple currencies including RMB, HKD, MYR, and GBP, although it currently has no foreign currency hedging policy in place[100] - The average credit period for trade payables is between 30 to 180 days, with a financial risk management policy in place to ensure timely repayments[59]
华营建筑(01582) - 2023 - 年度业绩