ANALOGUE HLDGS(HK:01977)2024-03-25 11:50Financial Performance - The company reported an adjusted profit attributable to shareholders of HKD 249,400,000 for the fiscal year 2023, excluding certain provisions and impacts[17]. - The group reported a net profit attributable to shareholders of HKD 2.514 billion for the fiscal year 2023, adjusted for certain provisions, resulting in an adjusted profit of HKD 249.4 million[42]. - The total revenue for 2023 was HKD 6,132,944, a decrease of 5.3% from HKD 6,474,650 in 2022[68]. - The gross profit for the fiscal year was HKD 833.3 million, down from HKD 1,011.5 million in the previous year, reflecting a decline of 17.6%[94]. - Profit attributable to owners for the year was HKD 251.5 million, an increase of 119.8% compared to HKD 114.6 million in 2022[94]. - Basic earnings per share for 2023 was HKD 0.18, compared to HKD 0.08 in 2022, representing a 125% increase[94]. - The group reported revenue of HKD 6,132,944 thousand for the year 2023, a decrease of 5.3% from HKD 6,474,650 thousand in 2022[129]. Revenue Breakdown - The ICBT business generated revenue of HKD 663,000,000 in the fiscal year 2023, an increase from HKD 631,000,000 in 2022, with new contract awards totaling HKD 618,000,000[12]. - Environmental engineering business revenue reached HKD 1,356,000,000 in fiscal year 2023, up from HKD 1,234,000,000 in 2022[21]. - The group's revenue from the elevator and escalator business reached HKD 378 million in the fiscal year 2023, an increase from HKD 353 million in fiscal year 2022[24]. - Revenue from long-term contracts in construction and maintenance was HKD 4,926,890 thousand in 2023, down from HKD 5,394,415 thousand in 2022, representing a decline of 8.7%[129]. - Revenue from Hong Kong decreased to HKD 5,123,788, down 13.2% from HKD 5,906,458 in 2022[68]. - Revenue from Mainland China increased to HKD 376,476, up 29.2% from HKD 291,595 in 2022[68]. Assets and Liabilities - The company's contract assets recognized an impairment provision of approximately HKD 5,788,000 for the year ended December 31, 2023, compared to HKD 4,234,000 in 2022[2]. - The company’s total liabilities related to secured assets increased significantly, with properties pledged rising to HKD 791,345,000 in 2023 from HKD 68,300,000 in 2022[3]. - As of December 31, 2023, the group's total liabilities decreased from HKD 2,398.8 million in 2022 to HKD 2,409.2 million in 2023, reflecting a slight increase of 0.4%[112]. - The group's bank borrowings as of December 31, 2023, amounted to HKD 320 million, up from HKD 277.9 million on December 31, 2022, mainly related to the mortgage loan for the acquisition of ATAL Tower[29]. - The group’s total liabilities as of December 31, 2023, were not reclassified under the 2020 and 2022 amendments to accounting standards[139]. Cash Flow and Financing - As of December 31, 2023, the group's cash and bank balances totaled HKD 906.4 million, a decrease from HKD 976 million on December 31, 2022[29]. - The group has established foreign exchange forward contracts for planned foreign currency transactions, with no foreign currency borrowings or other hedging tools in place[35]. - The group maintains a strong cash level and sufficient committed bank credit to support its growth and development[29]. - The group had bank financing and trade financing of approximately HKD 2.6734 billion, with HKD 949.8 million utilized[57]. Dividends - The company declared a second interim dividend of HKD 0.01 per share, totaling approximately HKD 13.9 million, alongside a first interim dividend of HKD 0.0852 per share, resulting in a total dividend distribution of HKD 0.0952 per share for the fiscal year ending December 31, 2023, amounting to approximately HKD 132.4 million, based on a profit attributable to owners of HKD 251.5 million[85]. - The company declared an interim dividend of 8.52 HKD cents per share for 2023, totaling 118,562 thousand HKD, up from 4.27 HKD cents per share and 59,586 thousand HKD in 2022[162]. Market Position and Future Outlook - The company has maintained a strong market position in infrastructure operations, data centers, and housing projects, contributing positively to revenue[19]. - The company expects annual construction volume in Hong Kong to reach approximately HKD 300 billion over the next decade, driven by public sector projects[65]. - The government plans to increase annual capital expenditure to over HKD 100 billion, particularly in housing and infrastructure, presenting significant opportunities for the company[65]. - The group anticipates positive impacts on Hong Kong's economic recovery as border restrictions with mainland China are fully lifted, which is expected to gradually reflect in business performance[41]. Employee and Operational Metrics - The group employed 3,010 staff as of December 31, 2023, an increase from 2,701 in 2022[54]. - Employee costs for 2023 amounted to 1,241,659 thousand HKD, compared to 1,137,692 thousand HKD in 2022, reflecting an increase of about 9.1%[162]. Taxation - The company incurred a tax expense of HKD 11.2 million for the year, a significant decrease from HKD 61.9 million in 2022[88]. - The effective tax rate for the qualifying group entities is calculated at 8.25% for the first HKD 2 million of estimated taxable profits and 16.5% for profits exceeding HKD 2 million[157]. - The group recognized a tax expense of 35,842 thousand HKD for the year, a decrease from 66,605 thousand HKD in the previous year, indicating a reduction of approximately 46.1%[165]. Acquisitions and Investments - The company acquired Precision Lift Services Limited for a total consideration of GBP 364,591 (approximately HKD 3,466,000), with a recognized gain of approximately HKD 8,581,000 due to the fair value exceeding the purchase price[7]. - The group successfully acquired two companies in the UK, JCW and Precision, which became majority-controlled and wholly-owned subsidiaries, respectively[59]. Credit and Receivables - The total trade receivables, net of credit loss provisions, reached HKD 1,003,086,000 for the year ended December 31, 2023, compared to HKD 808,169,000 in 2022[192]. - The group has confirmed a credit loss provision of approximately HKD 21,544,000 for trade receivables without credit impairment, up from HKD 15,787,000 in 2022[185]. - The group’s expected credit loss for trade receivables with credit impairment was approximately HKD 19,403,000 for the year ended December 31, 2023, compared to HKD 13,057,000 in 2022[185].