Financial Performance - Total revenue for the year 2023 was HKD 211,214,000, representing a 9.41% increase from HKD 193,041,000 in 2022[9] - EBITDA decreased by 10.46% to HKD 81,587,000 from HKD 91,117,000 in the previous year[9] - Net profit for the year was HKD 26,204,000, down 32.13% from HKD 38,610,000 in 2022[9] - Cash and cash equivalents increased by 20.02% to HKD 46,196,000 compared to HKD 38,491,000 in 2022[9] - Trade receivables surged by 345.83% to HKD 2,140,000 from HKD 480,000 in the previous year[9] - The net asset value decreased by 6.53% to HKD 197,355,000 from HKD 211,151,000 in 2022[9] - Net profit decreased by approximately 32.13% to about HKD 26,204,000 due to rising costs[22] - The group recorded a profit of approximately HKD 26,204,000 for the year, down from approximately HKD 38,610,000 the previous year, attributed to the termination of special subsidies for quarantine services[51] - Current assets as of December 31, 2023, were approximately HKD 71,473,000, down from HKD 90,530,000 the previous year, while current liabilities decreased from HKD 69,023,000 to HKD 59,789,000[56] - Total cash and cash equivalents were approximately HKD 46,196,000, an increase from HKD 38,491,000 the previous year[57] - The total equity of the group as of December 31, 2023, was approximately HKD 197,355,000, down from HKD 211,151,000 the previous year[59] - The board proposed a final dividend of HKD 0.04 per share, totaling HKD 16,000,000, compared to HKD 40,000,000 the previous year[60] - Capital expenditures for the year were approximately HKD 6,130,000, significantly lower than HKD 22,654,000 the previous year, primarily for the acquisition of properties, plants, and equipment for elderly care homes[70] Revenue Sources - Revenue from elderly care services increased from approximately HKD 145,144,000 to about HKD 159,255,000, a growth of approximately 9.72%[38] - Revenue from the Social Welfare Department's "Improvement Purchase Scheme" increased from approximately HKD 40,067,000 to about HKD 51,293,000, an increase of approximately 28.02%[39] - Revenue from personal clients renting accommodation rose from approximately HKD 99,991,000 to about HKD 102,805,000, an increase of approximately 2.81%[41] - Average occupancy rate for "Improvement Purchase Scheme" elderly homes was 88.18%, up from 87.49% the previous year[48] Employee and Operational Insights - The company aims to enhance competitiveness through employee training and upgrading facilities in the future[15] - Employee costs decreased from approximately HKD 99,781,000 to about HKD 92,926,000, a decline of approximately 6.87%[49] - The group plans to enhance staff training and optimize existing resources to control costs[22] - The group had 426 employees as of December 31, 2023, a decrease from 437 employees the previous year[71] - The company has over 20 years of experience in elderly care facilities, with key personnel holding significant roles in management and operations[81] - The CEO, Mr. Lei, has accumulated over 22 years of experience in the elderly care industry, enhancing operational management[89] - The company is focused on developing healthcare policies and training programs for medical staff across various levels[88] - The company has a strong emphasis on employee training and operational efficiency to support its expansion plans[81] Corporate Governance - The company is committed to enhancing its corporate governance and social responsibility practices[85] - The board includes experienced members with backgrounds in finance, accounting, and business strategy, contributing to the company's governance[96] - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced skill set and experience[122] - The board held a total of four regular meetings during the reporting year, with all members actively participating in decision-making processes[128] - Independent non-executive directors accounted for over one-third of the board, maintaining a high level of independence and exercising independent judgment[122] - The company has established mechanisms to ensure the board receives independent opinions and has conducted meetings without the presence of other directors to discuss matters freely[122] - The board's primary role includes planning corporate strategies, monitoring financial performance, and reviewing the effectiveness of internal control systems[134] - The company has adhered to corporate governance codes regarding the appointment and re-election of directors, with a three-year fixed term for executive directors[145] - The remuneration committee has consulted with the chairman and/or CEO regarding the compensation of directors and senior management, ensuring alignment with market standards[148] - The company has obtained directors and officers liability insurance to protect against legal claims[147] - The board regularly reviews its governance policies to ensure they meet the needs of the group[136] - The management provides quarterly financial updates to the board, ensuring transparency regarding the company's performance and outlook[137] Risk Management and Compliance - The board regularly reviews the effectiveness of the risk management and internal control systems, which cover operational, legal, financial, and audit aspects[178] - The company has no internal audit department; however, the executive directors and management are responsible for reviewing the effectiveness of the internal control system[179] - The board considers various factors when declaring dividends, including financial performance, funding needs, and regulatory restrictions[190] - The company encourages employees and business partners to report any misconduct or unethical behavior[192] - The board has established a framework for timely and accurate disclosure of significant information to maintain transparency[184] - The company emphasizes high standards of business integrity and ethical practices in all transactions[193] Diversity and Inclusion - The board consists of seven male members and one female member, with a workforce of 354 females and 72 males, indicating a gender diversity in the employee base but limited representation at the board level[155] - The company aims to increase the proportion of female directors if suitable candidates are identified in the future[155] - The company has adopted a board diversity policy to enhance efficiency and governance, focusing on various diversity criteria including skills, knowledge, gender, age, and cultural background[150] - The Nomination Committee is responsible for reviewing the board's structure, size, composition, and diversity, and for identifying suitable candidates for board membership[172] - The Nomination Committee will regularly review the diversity policy to ensure its effectiveness[172] - The board members possess diverse professional experiences, including management in elder care, business management, corporate governance, accounting, law, nursing, and social work[160]
恒智控股(08405) - 2023 - 年度财报