Financial Performance - The environmental maintenance business recorded a revenue of approximately HK$247,348,000 in 2022, a decline of 24% compared to HK$325,957,000 in 2021 due to the impact of COVID-19 lockdowns[4]. - The Group recorded a revenue of approximately HK$262,271,000 for the year ended 31 December 2022, representing a decrease of approximately 21.0% compared to HK$332,047,000 for the year ended 31 December 2021[32]. - The total comprehensive loss attributable to equity holders of the Company was approximately HK$177,211,000, compared to an income of approximately HK$48,439,000 in 2021[32]. - The Group's gross profit for the year amounted to approximately HK$47,857,000, a decrease from HK$81,852,000 in 2021, resulting in a total comprehensive loss attributable to equity holders of approximately HK$177,211,000 compared to an income of approximately HK$48,439,000 in 2021[13]. - The gross profit ratio for the year was approximately 18.2%, down from approximately 24.7% for the year ended 31 December 2021[38]. - The total revenue for the year was HK$262,271,000, down from HK$332,047,000, with a cost of revenue of approximately HK$214,414,000, a reduction of about 14.3% from HK$250,195,000 in the previous year[66]. Business Operations - As of December 31, 2022, the Group had 11 environmental maintenance service contracts in progress with a total contract amount of approximately RMB584,560,000, down from RMB730,000,000 in 2021[4]. - The environmental maintenance business is expanding into other regions in the PRC, including Xinjiang Autonomous Region, Hebei Province, and Inner Mongolia Autonomous Region[32]. - The Group invested in three new businesses: manufacturing and sales of medical devices, sales of cosmetics products, and sales of frozen meat[37]. - The acquisition of Shanghai Umitai Medical Technology Co. Ltd expanded the group's business into medical devices, generating approximately HK$3,328,000 in revenue during the year[63]. - The frozen meat trading business initiated in August 2022 generated approximately HK$6,064,000 in revenue during the year[63]. - The cosmetics trading business started in October 2022 contributed approximately HK$2,157,000 in revenue during the year[63]. Financial Position - The total assets of the Group decreased to HK$681,957,000 in 2022 from HK$848,607,000 in 2021[52]. - The net assets of the Group were HK$472,738,000 in 2022, down from HK$656,201,000 in 2021[52]. - As of December 31, 2022, the Group's cash and cash equivalents decreased by 64.9% to approximately HK$81,911,000 compared to HK$233,608,000 as of December 31, 2021[92]. - The Group maintained a net cash position as of December 31, 2022, and did not disclose a gearing ratio due to the absence of significant debt[16]. - The Group's restricted cash amounted to approximately HK$9,000, compared to HK$7,688,000 in 2021, pledged as performance guarantees for various projects[16]. Expenses and Impairments - General and administrative expenses increased by approximately 170.4% to approximately HK$191,498,000, primarily due to goodwill impairment of approximately HK$129,112,000[67]. - A fair value loss on investment properties amounted to approximately HK$12,128,000, compared to a fair value gain of approximately HK$1,874,000 in the previous year[67]. - Goodwill impairment related to the BYL Group amounted to approximately HK$91,701,000, with additional impairment of intangible assets for customer relationships at approximately HK$2,849,000[68]. - The group recorded a loss on disposal of financial assets at fair value through profit or loss amounting to approximately HK$2,884,000, compared to a gain of HK$59,409,000 in 2021[41]. Shareholder Information - As of December 31, 2022, the Company's reserves available for distribution to shareholders amounted to approximately HK$403,757,000[85]. - The Group did not recommend any dividend payment for the year ended 31 December 2022[118]. - The Company has a dividend policy that is subject to review based on operational performance, liquidity, and capital requirements, with no guarantee of specific dividend payments in any period[107]. - The interests of substantial shareholders recorded as of December 31, 2022 include no interests or short positions in shares or debentures that required notification[126]. Corporate Governance - The Company is committed to high standards of corporate governance and business ethics[165]. - The Board comprises six directors, including three executive directors and three independent non-executive directors[186]. - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2022[185]. - The Board is responsible for maintaining proper accounting records to monitor the Company's overall financial position[198]. - The Company provides timely announcements of operations and financial positions to shareholders through half-yearly and annual results[198]. Risk Management - The management will continue to monitor foreign exchange risks, particularly fluctuations in RMB against HKD, and will adopt hedging measures where necessary[16]. - The Group faced tremendous pressure on recovery due to complex external factors and sporadic COVID-19 resurgences, which restricted business expansion[77]. Employee Information - As of December 31, 2022, the Group had a total of 2,192 employees, comprising 1,000 staff and 1,192 laborers[147]. - Total employee benefits expenses decreased by approximately 24.4% to approximately HK$144,878,000, attributed to a reduction in the number of employees from 4,690 to 2,192[67]. Strategic Initiatives - The Group plans to explore business opportunities in high growth sectors in the PRC, including high technology and internet businesses[37]. - The Group aims to generate a stable and constant stream of income and create long-term value for shareholders[37]. - The management team is focused on strategic initiatives that include potential mergers and acquisitions to enhance market presence[102].
网誉科技(01483) - 2022 - 年度财报