Financial Performance - The company recorded revenue of approximately HKD 7,583,000 for the year ended December 31, 2021, a decrease of about 5% from HKD 7,985,000 in the previous year[7]. - The attributable loss for the year was approximately HKD 65,923,000, compared to a loss of HKD 67,422,000 in 2020, primarily due to expected credit loss provisions of HKD 35,163,000[7]. - The energy-saving solutions segment reported a loss of approximately HKD 65,280,000, an increase from HKD 57,818,000 in 2020, driven by higher expected credit loss provisions and intangible asset impairment[8]. - The expected credit loss provision for receivables was HKD 35,163,000, up from HKD 26,051,000 in the previous year[9]. - Intangible asset impairment amounted to HKD 21,678,000, compared to HKD 20,315,000 in 2020, reflecting a full impairment of intangible assets[12]. - Total assets decreased to approximately HKD 82,311,000 from HKD 157,776,000 in 2020, primarily due to credit loss provisions and intangible asset impairments[14]. - Total liabilities decreased to approximately HKD 34,101,000 as of December 31, 2021, down from HKD 45,062,000 in 2020, primarily due to trade payables and other payables of about HKD 9,386,000[15]. - The group's net current assets were approximately HKD 7,493,000 as of December 31, 2021, compared to HKD 50,686,000 in 2020[17]. - Cash and bank balances as of December 31, 2021, were approximately HKD 18,886,000, down from HKD 28,757,000 in 2020[17]. - The net asset value decreased to approximately HKD 48,210,000 as of December 31, 2021, from HKD 112,714,000 in 2020[23]. - The total employee cost for the year ended December 31, 2021, was approximately HKD 6,579,000, down from HKD 13,981,000 in 2020[22]. Business Strategy and Operations - The company is exploring opportunities in the loan financing and financial investment sectors but has not identified suitable prospects[13]. - The company adopted a more cautious approach in 2021, leading to a slowdown in new order intake due to anticipated cash flow issues from receivables[11]. - The impact of the real estate developer crisis in China significantly affected the energy-saving business, particularly in commercial properties[11]. - The company noted a decrease in revenue due to the pandemic's impact on client operations, including reduced hotel occupancy and factory production[9]. - The company aims to improve cash flow by targeting potential clients for project buyouts and exploring secondary sales to existing customers[32]. - The management anticipates challenges in the fiscal year 2022 due to uncertainties in the global economy and expects customer demand and capital expenditure budgets to be affected[33]. - The company is actively seeking investment opportunities in the green industry, including energy-saving projects and clean energy procurement[33]. - The company plans to explore various financing sources, including project financing, debt financing, and/or equity financing for business development[33]. Shareholder and Capital Management - The company raised approximately HKD 21 million from the rights issue completed on December 14, 2020, with a total gross amount of about HKD 23.5 million[29]. - The net proceeds from the rights issue are allocated as follows: approximately HKD 12.6 million for potential new projects and HKD 8.4 million for operating expenses[29]. - As of December 31, 2021, the remaining balance of the net proceeds from the rights issue is HKD 3.8 million, which is intended for potential new projects to be utilized by the end of December 2023[30]. - The company has a capital commitment of approximately HKD 5,807,000 for contracted but unprovided capital expenditures as of December 31, 2021, compared to HKD 3,365,000 in 2020[19]. - The company did not declare any final dividends for the year, consistent with the previous year[57]. - The company has adopted a dividend policy aimed at enhancing shareholder value, which will be reviewed periodically[62]. - As of December 31, 2021, the company had no distributable reserves[61]. Governance and Risk Management - The company identified key risks including operational risks, market risks related to government policies, and competition from other energy-saving service providers[46][48][50]. - The board consists of six directors, including three executive directors and three independent non-executive directors[112]. - All independent non-executive directors have confirmed their independence according to the relevant listing rules[114]. - The board held six meetings, one annual general meeting, and one special general meeting during the year[114]. - The nomination committee, established in June 2005, is composed of three independent non-executive directors[120]. - The board ensures that at least one independent non-executive director possesses appropriate professional qualifications or relevant financial management expertise[114]. - The board's composition includes a minimum of one-third independent non-executive directors[114]. - The board regularly reviews its governance practices to maintain a balance of power and responsibilities[115]. - The company has established risk management procedures to address significant risks associated with its business operations[144]. - The board confirmed that the internal control and risk management systems are reasonable and effective for the year[148]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes corporate social responsibility as a core value for sustainable business operations[156]. - The company aims to integrate environmental and social considerations into its business objectives[158]. - The board is responsible for overseeing environmental, social, and governance (ESG) matters and ensuring effective risk management[165]. - The company has identified key environmental and social issues, focusing on energy efficiency solutions with minimal environmental impact[168]. - The company commits to continuous improvement in waste management and reducing greenhouse gas emissions[160]. - The company engages with stakeholders to understand their expectations regarding significant ESG issues[166]. - The company has implemented policies to ensure compliance with environmental and social laws and regulations[163]. - The company aims to support community engagement and promote a safe and healthy work environment[160]. - Energy consumption decreased by 59% from 13,796 kWh in 2020 to 5,669 kWh in 2021[169]. - Greenhouse gas emissions decreased from 10.13 tons CO2 equivalent in 2020 to 4.11 tons CO2 equivalent in 2021, a reduction of 59%[171]. - The company has no reported incidents of non-compliance with environmental laws and regulations that significantly impact operations[178]. Employee Management and Training - The company employed a total of 20 employees in 2021, down from 33 in 2020[181]. - The gender distribution of employees remained stable with 15 males and 4 females in 2021, compared to 16 males and 4 females in 2020[181]. - Employee turnover rate for 2021 was 5%, significantly lower than 65% in 2020[187]. - Total training hours provided to employees in 2021 was 266 hours, down from 407 hours in 2020[195]. - Average training hours per employee in 2021 was 14 hours, compared to 20 hours in 2020[195]. - 82% of male employees and 18% of female employees participated in training programs in 2021[195]. - The company provided onboarding training for new employees to familiarize them with its culture and operations[195]. - The company has not used child or forced labor in the current year, adhering to local employment laws[198]. Share Options and Employee Incentives - The company has a share option plan adopted on May 25, 2018, which is valid for ten years and will expire on May 25, 2028[76]. - Under the share option plan, the total number of shares issued or to be issued upon full exercise of options cannot exceed 30% of the company's issued shares at any time[79]. - The maximum number of shares that can be issued upon exercise of options is capped at 10% of the issued shares as of the date of shareholder approval[79]. - The total number of stock options granted during the year was 11,122,941, with 2,983,002 options exercised[83]. - The company aims to attract and retain talented employees through the share option plan[76].
信能低碳(00145) - 2021 - 年度财报