Financial Performance - Revenue for the year ended December 31, 2023, was HKD 2,122,397, an increase of 17.5% from HKD 1,805,843 in 2022[2] - Gross profit for the same period was HKD 340,556, representing a gross margin of 16.0%, up from HKD 289,444 in 2022[2] - Net profit for the year was HKD 120,466, a 25.4% increase compared to HKD 96,024 in 2022[2][3] - Basic and diluted earnings per share increased to HKD 8.03 from HKD 6.40, reflecting a growth of 25.4%[2] - Total comprehensive income for the year was HKD 126,546, compared to HKD 102,830 in 2022, marking a 23.1% increase[4] - The company reported a pre-tax profit of HKD 142,540 for 2023, up from HKD 116,197 in 2022, reflecting a growth of 22.7%[25] - The company's revenue for the fiscal year 2023 was HKD 2,122,400,000, representing a 17.5% increase from HKD 1,805,800,000 in 2022[37] - The gross profit for the fiscal year 2023 was HKD 340,600,000, an increase of 17.7% from HKD 289,400,000 in 2022, with a stable gross profit margin of 16.0%[38] - The net profit for the fiscal year 2023 was HKD 120,500,000, reflecting a 25.5% increase from HKD 96,000,000 in 2022[41] Assets and Liabilities - Non-current assets totaled HKD 480,063, up from HKD 461,743 in 2022, indicating a growth of 3.0%[6] - Current assets increased to HKD 1,276,689 from HKD 1,063,918, representing a growth of 20.0%[6] - Total liabilities increased to HKD 1,026,546 from HKD 874,503, reflecting a rise of 17.4%[6] - The company's equity increased to HKD 730,206 from HKD 653,160, a growth of 11.8%[6] - The company’s total assets reached HKD 1,756,752, a slight increase from HKD 1,525,661 in the previous year[19] - The total liabilities increased to HKD 1,026,546 from HKD 872,501, reflecting a rise of 17.7%[19] Cash Flow and Investments - Capital expenditures for the year were HKD 104,979, up from HKD 59,560 in 2022, indicating a 76.2% increase in investment in property, plant, and equipment[23] - The company maintained a cash and bank balance of HKD 566,500,000 as of December 31, 2023, compared to HKD 457,800,000 in 2022, reflecting strong cash flow from operations[42] - Interest income rose to HKD 16,208 in 2023, compared to HKD 2,633 in 2022, marking a significant increase[24] - Trade receivables increased to HKD 297,575,000 in 2023 from HKD 274,974,000 in 2022, with significant concentration risks from major customers[31] - Trade payables rose to HKD 200,067,000 in 2023 from HKD 131,001,000 in 2022, indicating increased operational activity[34] Dividends - The company proposed a final dividend of HKD 0.02 per share and a special dividend of HKD 0.02 per share, totaling HKD 60,000,000, compared to HKD 49,500,000 in 2022[29] - The board proposed a final dividend of HKD 0.02 per share and a special dividend of HKD 0.02 per share, pending shareholder approval at the upcoming annual general meeting[52] Operational Insights - The company plans to continue expanding its operations in both public and private sectors in Hong Kong and overseas[7] - The construction services segment generated HKD 1,760,987 in revenue, while the drilling and exploration segment contributed HKD 361,410, together totaling HKD 2,122,397[22] - Major customer A's revenue increased significantly to HKD 1,033,314 in 2023 from HKD 468,268 in 2022, representing a growth of 120.5%[20] - The foundation and drilling segments had ongoing projects with contract amounts of approximately HKD 3,857,000,000 and HKD 744,000,000, respectively[36] - The group anticipates increased demand for its services due to ongoing government investments in infrastructure and public housing supply, particularly in the Northern Metropolis area[47] Human Resources and Development - As of December 31, 2023, the group employed 674 staff in Hong Kong, with annual salary reviews based on market rates and individual performance[46] - The group has invested significantly in talent development through the establishment of the "Construction Academy" to train the next generation of professionals in the foundation industry[47] Governance and Compliance - The company has complied with all relevant provisions of the corporate governance code, except for C.5.1, which requires the board to meet at least four times a year[57] - The audit committee consists of three independent non-executive directors, who have reviewed the accounting principles and policies adopted by the company[58] - The company's auditor, Ernst & Young, has agreed to the figures presented in the preliminary financial results for the year ending December 31, 2023, but does not provide any assurance on the preliminary results[59] - There were no purchases, sales, or redemptions of the company's listed shares by the company or any of its subsidiaries during the year[61] - The board of directors consists of nine members, including six executive directors and three independent non-executive directors[62] Strategic Initiatives - The group is committed to enhancing innovative technology and office automation to improve productivity and efficiency in the new fiscal year[50] - An Environmental, Social, and Governance (ESG) committee has been established to oversee various initiatives, including carbon emissions reporting and employee welfare[50] - The group remains cautiously optimistic about the future of the foundation industry in Hong Kong, actively seeking new opportunities and diversification to balance risks and returns[50] - The group’s subsidiary, Drilling Company, continues to contribute significantly to performance, successfully securing multiple large-scale site investigation contracts despite a slowdown in the market[49] - The group has obtained a site leveling license from the Development Bureau in 2023, which is expected to enhance opportunities for securing large project tenders[49]
建业建荣(01556) - 2023 - 年度业绩