Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 5,981,640, an increase of 1.4% compared to HKD 5,898,359 in 2022[3]. - Gross profit for the same period was HKD 660,259, representing a 15.9% increase from HKD 569,519 in 2022[3]. - The net profit for the year was HKD 56,447, a significant increase from HKD 14,286 in 2022, marking a growth of 296.5%[3][4]. - Basic and diluted earnings per share for the year were HKD 0.043, compared to a loss of HKD 0.017 in the previous year[3]. - Total comprehensive income for the year was HKD 67,769, compared to HKD 7,089 in 2022, indicating a substantial increase[4]. - Total revenue for the year ended December 31, 2023, reached HKD 6,003,016,000, a slight decrease from HKD 5,901,685,000 in the previous year, representing a year-over-year decline of approximately 0.2%[14]. - The company reported a pre-tax profit of HKD 76,080,000 for the year, a significant increase from HKD 36,762,000 in the prior year, reflecting a growth of 106.5%[14][17]. - Other income for 2023 totaled HKD 25,942,000, a substantial increase from HKD 6,277,000 in 2022, reflecting a growth of approximately 313.5%[27]. - The effective tax expense for 2023 was HKD 19,633,000, compared to HKD 22,476,000 in 2022, indicating a decrease of about 12.3%[31]. Assets and Liabilities - The company's total assets as of December 31, 2023, were HKD 4,573,294, compared to HKD 4,835,896 in 2022, reflecting a decrease of 5.4%[6][7]. - Current assets increased to HKD 4,295,521 from HKD 3,551,678, showing a growth of 20.9%[6]. - The company's cash and cash equivalents rose to HKD 1,070,999, up from HKD 760,662, an increase of 40.7%[6]. - Non-current liabilities decreased slightly to HKD 133,937 from HKD 139,476, a reduction of 4.0%[7]. - The equity attributable to the company's owners increased to HKD 2,105,830 from HKD 2,085,196, reflecting a growth of 1.0%[7]. - Total assets as of December 31, 2023, were HKD 5,573,294,000, compared to HKD 4,835,896,000 in the previous year, marking an increase of approximately 15.3%[16][19]. - The total liabilities increased to HKD 3,280,443,000 from HKD 2,583,319,000, representing a rise of about 27.0% year-over-year[16][19]. - Total interest-bearing debt at the end of the reporting period was HKD 773,600,000, an increase from HKD 539,500,000 as of December 31, 2022[61]. - Current liabilities accounted for 93.3% of total interest-bearing debt, up from 90.3% as of December 31, 2022[61]. - The debt-to-equity ratio increased to 36.7% from 25.9% as of December 31, 2022[61]. Revenue Breakdown - Sales to external customers in the chemical materials segment amounted to HKD 2,262,239,000, while the building construction segment generated HKD 2,119,472,000, indicating a decrease of 3.7% and an increase of 17.6% respectively compared to the previous year[14]. - Revenue from Hong Kong increased to HKD 5,672,521,000 in 2023 from HKD 5,070,852,000 in 2022, marking a growth of about 11.9%[23]. - Revenue from mainland China and Macau significantly decreased to HKD 309,119,000 in 2023 from HKD 827,507,000 in 2022, a decline of approximately 62.7%[23]. - The company generated approximately HKD 1,033,314,000 from a major customer, accounting for over 10% of total revenue[21]. - The company reported a decrease in sales in the plastic raw materials segment, which totaled HKD 405,870,000, down from HKD 450,592,000, a decline of approximately 9.9%[14][17]. - The foundation and geological investigation segment contributed revenue of HKD 2,119,000,000, up from HKD 1,801,000,000, with an operating profit of HKD 142,500,000 compared to HKD 116,200,000 last year[47]. - The revenue for the drilling subsidiary, Drilling Co., was HKD 406 million in 2023, down from HKD 451 million in 2022, with a small operating loss of HKD 200,000 compared to a profit of HKD 7.6 million in the previous year[53]. - The construction segment contributed revenue of HKD 888 million in 2023, a decrease from HKD 948 million in 2022, but improved operating profit of HKD 11 million compared to a loss of HKD 21.4 million in the prior year[56]. - The electrical and mechanical group reported revenue of HKD 2.262 billion in 2023, down from HKD 2.349 billion in 2022, with an operating loss of HKD 15 million compared to a profit of HKD 11.5 million in the previous year[54]. - The aviation segment recorded revenue of HKD 306 million in 2023, down from HKD 350 million in 2022, with operating profit decreasing to HKD 6.2 million from HKD 7.4 million[58]. Operational Insights - The company plans to focus on expanding its market presence and investing in new technologies to drive future growth[14]. - The company plans to declare a final dividend of HKD 0.025 per share, consistent with the previous year's dividend[43]. - The company is investing in talent development through the establishment of a training academy aimed at nurturing the next generation of professionals in the foundation industry[48]. - The overall outlook for the foundation industry remains positive due to government investments in infrastructure and increased public housing supply[48]. - The construction segment anticipates a strong performance in the coming years due to the approval of several large non-residential projects in Hong Kong[56]. - The company plans to enhance information technology and office automation to improve productivity and efficiency in the new fiscal year[51]. - The environmental, social, and governance (ESG) committee has been established to oversee carbon emissions reporting and employee welfare initiatives[51]. - The company aims to diversify its revenue sources by exploring new opportunities in core business areas and expanding into green plastic products and health-related items[53]. - The company maintains strict monitoring of overdue receivables, with overdue balances reviewed regularly by senior management[35]. Financial Management - The company's pre-tax profit for 2023 was impacted by a cost of sales amounting to HKD 459,672,000 for inventory and HKD 4,861,709,000 for service provision[30]. - Total financial expenses increased to HKD 38,255,000 in 2023 from HKD 18,701,000 in 2022, representing an increase of approximately 104.1%[29]. - The company reported a significant impairment loss of HKD 10,265,000 on contract assets in 2023, which was not present in 2022[30]. - The depreciation expense for property, plant, and equipment (excluding right-of-use assets) was HKD 85,025,000 in 2023, slightly down from HKD 85,868,000 in 2022[30]. - Trade receivables decreased to HKD 777,088,000 from HKD 814,871,000 year-on-year, with a provision for impairment of HKD 10,532,000[35]. - Trade payables increased to HKD 624,176,000 from HKD 429,320,000, reflecting a rise in operational liabilities[40]. Governance and Compliance - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance for the year ending December 31, 2023[77]. - The board held two regular meetings during the year, deviating from the corporate governance code which requires at least four meetings annually[78]. - The audit committee has met regularly and reviewed the financial reporting procedures and content for the year ending December 31, 2023[80]. - The company's auditor, Ernst & Young, has agreed on the figures presented in the preliminary performance announcement for the year ending December 31, 2023[81]. - There were no purchases, sales, or redemptions of the company's listed shares by the company or its subsidiaries during the year[82]. Future Outlook - The outlook for 2024 indicates a challenging environment with rising borrowing costs and intense competition, but the group remains cautiously optimistic about sustainable performance[71][74]. - The group is actively exploring opportunities in zero-carbon technologies, robotics, digitalization, electrification infrastructure, and urban air mobility[73]. - The group has a substantial undrawn financing amounting to HKD 2,701,000,000 available for operational and trade financing[61]. - The group employed approximately 1,830 employees as of December 31, 2023, with annual salary reviews based on market rates and individual performance[67]. - The group confirmed revenue of HKD 4,414,000 from a construction framework agreement during the fiscal year[68]. - Revenue of HKD 48,268,000 was confirmed from renovation framework agreements during the fiscal year[70].
建联集团(00385) - 2023 - 年度业绩