Financial Performance - For the year ended December 31, 2022, the Group's revenue decreased by 26.8% from approximately HK$384.4 million in 2021 to approximately HK$281.5 million in 2022[14]. - The decrease in overall revenue was primarily due to a reduction in new contracts awarded during the year[14]. - Total revenue for construction and engineering services for the year ended 31 December 2022 was approximately HK$273.4 million, a decrease of approximately 27.6% compared to HK$377.4 million in the previous year[25]. - Revenue from construction and engineering services decreased by approximately HK$104.0 million or approximately 27.6%, from approximately HK$377.4 million in 2021 to approximately HK$273.4 million in 2022, primarily due to a reduction in new contracts awarded[43]. - Revenue from property-related services increased by approximately HK$1.1 million, from approximately HK$7.0 million in 2021 to approximately HK$8.1 million in 2022, mainly due to increased consultancy fees from renewed agreements[44]. - The Group's total revenue decreased by approximately HK$102.9 million or approximately 26.8%, from approximately HK$384.4 million in 2021 to approximately HK$281.5 million in 2022[42]. Profitability - The gross profit for the construction and engineering segment increased from approximately HK$0.6 million in 2021 to approximately HK$0.8 million in 2022, attributed to a smaller loss from ongoing contracts[14]. - The Group's total gross profit for 2022 amounted to approximately HK$3.8 million, representing an increase of 46.2% compared to approximately HK$2.6 million in 2021[50]. - The gross profit margin for the Group in 2022 was approximately 1.3%, up from approximately 0.7% in 2021[50]. - Gross profit from construction and engineering services increased by approximately 33.3% to approximately HK$0.8 million in 2022, with a gross profit margin of approximately 0.3%[51]. - Gross profit from property-related services increased by approximately HK$0.9 million to approximately HK$3.0 million in 2022, with a gross profit margin of approximately 37.3%[52]. Operational Strategy - The Group will continue to review its existing operations to formulate long-term business strategies, particularly in site formation and ground investigation works[15]. - The Group aims to explore or seek other business opportunities to strengthen and consolidate its revenue base[15]. - The Group anticipates a challenging outlook for its construction and engineering services and property-related services in the coming years[15]. - The Group has resumed tendering for LPM projects as the suspension was lifted, focusing on both public and private sector geotechnical works[35]. - The Group's strategy includes competitive pricing to maintain competitiveness in the slope works sector despite challenges in securing new contracts[35]. - The Group aims to diversify its business by exploring opportunities in other types of civil engineering works and joint tendering with partners[35]. Employee and Management - The Group's employee count decreased to 62 full-time employees as of December 31, 2022, down from 91 employees in the previous year[91]. - Total staff costs for the year ended December 31, 2022, were approximately HK$28.1 million, a decrease from approximately HK$30.3 million in 2021[91]. - The company has a diverse management team with extensive experience in finance, engineering, and corporate governance, enhancing its operational capabilities[127]. - The leadership team is committed to enhancing operational efficiency and driving the company's strategic initiatives forward[127]. - The company emphasizes compliance and governance, with several members holding key positions in various committees[120]. Corporate Governance - The company emphasizes the importance of maintaining high standards of corporate governance to enhance shareholder value and safeguard stakeholder interests[134]. - The company has complied with the Corporate Governance Code during the year ended December 31, 2022[135]. - The Board consists of five members, including two executive directors and three independent non-executive directors, with independent directors representing more than one-third of the Board[172]. - The independent non-executive directors have confirmed their independence and are free from any relationships that could interfere with their judgment[174]. - The Company has established a nomination policy to identify qualified individuals for Board membership, ensuring a balance of skills and diversity[164]. Financial Position - As of December 31, 2022, the Group had total cash and bank balances of approximately HK$167.2 million, down from approximately HK$186.3 million as of December 31, 2021[72]. - The gearing ratio as of December 31, 2022, was approximately 0.3%, a decrease from approximately 0.6% as of December 31, 2021, due to lower total indebtedness from lease liabilities repayment[79]. - The net loss for the year ended December 31, 2022, amounted to approximately HK$31.7 million, an increase from a net loss of approximately HK$14.3 million in 2021, resulting in a net loss margin of approximately 11.3%[69]. - An impairment under expected credit loss (ECL) allowance on trade and other receivables of approximately HK$18.3 million was recognized for the year ended December 31, 2022, compared to a reversal of approximately HK$5.8 million in 2021[61]. Future Outlook - The Group plans to diversify and explore other investment opportunities while closely monitoring market risks and uncertainties during the economic recovery cycle[41]. - The Group will adopt a cautious approach in developing its construction and decoration business in Cambodia in 2023, considering market conditions[40]. - The Group expects to use the remaining net proceeds within one year according to actual business needs[102].
致浩达控股(01707) - 2022 - 年度财报