华禧控股(01689) - 2022 - 年度业绩

Performance Summary The company's financial performance in FY2022 saw significant declines across key metrics, including revenue and a shift to operating loss Key Performance Indicators for FY2022 In FY2022, the company experienced significant declines across key financial metrics, including a 52% revenue decrease and a shift from operating profit to loss, resulting in a basic loss per share with no final dividend recommended FY2022 Performance Summary (HKD Million, except per share data) | Indicator | Change | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Revenue | ↓ 52% | 194.54 | 404.56 | | Gross Profit | ↓ 59% | 47.06 | 115.70 | | Operating (Loss)/Profit | ↓ 227% | (58.34) | 46.05 | | (Loss)/Profit Attributable to Owners of the Company | ↓ 244% | (53.11) | 37.00 | | Basic (Loss)/Earnings Per Share | ↓ 244% | (7.57) HK cents | 5.27 HK cents | | Final Dividend | Not Recommended | Nil | Nil | Consolidated Financial Statements This section presents the company's consolidated financial statements, including the statement of comprehensive income and statement of financial position Consolidated Statement of Comprehensive Income For 2022, the company reported total revenue of HKD 195 million, a 52% year-on-year decrease, leading to a loss of HKD 53.37 million from a profit of HKD 36.48 million in the prior year Consolidated Statement of Comprehensive Income Summary (HKD Thousand) | Item | 2022 | 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 194,536 | 404,559 | -51.9% | | Gross Profit | 47,056 | 115,699 | -59.3% | | Operating (Loss)/Profit | (58,344) | 46,045 | -226.7% | | (Loss)/Profit for the Year | (53,370) | 36,475 | -246.3% | | (Loss)/Profit Attributable to Owners of the Company | (53,107) | 36,996 | -243.6% | Basic (Loss)/Earnings Per Share | Item | 2022 | 2021 | | :--- | :--- | :--- | | Basic and Diluted (Loss)/Earnings Per Share | (7.57) HK cents | 5.27 HK cents | Consolidated Statement of Financial Position As of December 2022, the company's total assets decreased by 21% to HKD 577 million, with total equity declining by 20%, primarily due to reduced trade receivables and financial assets at fair value through profit or loss Consolidated Statement of Financial Position Summary (HKD Thousand) | Item | December 31, 2022 | December 31, 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Assets | | | | | Non-current Assets | 114,021 | 56,978 | +100.1% | | Current Assets | 463,245 | 675,999 | -31.5% | | Total Assets | 577,266 | 732,977 | -21.2% | | Liabilities and Equity | | | | | Total Liabilities | 216,006 | 282,160 | -23.5% | | Total Equity | 361,260 | 450,817 | -19.9% | | Total Equity and Liabilities | 577,266 | 732,977 | -21.2% | Notes to the Consolidated Financial Statements This section provides detailed notes explaining the company's financial statements, including accounting policies, segment information, and specific asset/liability breakdowns Company Information and Basis of Preparation Wah Hei Holdings Limited, an investment holding company registered in the Cayman Islands, primarily engages in cigarette packaging material production and environmental ecological restoration in China, with financial statements prepared under Hong Kong Financial Reporting Standards - The Group primarily engages in (i) the production and sale of cigarette packaging materials; and (ii) environmental and ecological restoration and governance businesses in China[14] - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance, based on the historical cost convention[17][66] Revenue and Segment Information During the reporting period, total company revenue was HKD 195 million, with cigarette packaging contributing HKD 168 million (86%) and environmental governance revenue sharply declining by 88% to HKD 26.64 million (14%), with the latter's shift from profit to loss being a primary driver of the overall group loss Segment Performance Summary (HKD Thousand) | Item | 2022 | 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | | | | | Cigarette Packaging Business | 167,582 | 183,925 | -8.9% | | Environmental Governance Business | 26,641 | 215,333 | -87.6% | | Total | 194,536 | 404,559 | -51.9% | | Segment Results | | | | | Cigarette Packaging Business | 6,253 | 25,326 | -75.3% | | Environmental Governance Business | (37,549) | 25,463 | Shift from Profit to Loss | - The number of new environmental governance projects significantly decreased due to the pandemic, leading to an 88% year-on-year decline in this business segment's revenue, from HKD 215 million to HKD 26.64 million[28] Basic (Loss)/Earnings Per Share and Dividends For 2022, the loss attributable to owners of the company was HKD 53.11 million, resulting in a basic loss per share of 7.57 HK cents, compared to earnings per share of 5.27 HK cents in the prior year, with no final or interim dividends recommended by the Board Basic (Loss)/Earnings Per Share Calculation | Item | 2022 | 2021 | | :--- | :--- | :--- | | (Loss)/Profit Attributable to Owners of the Company (HKD Thousand) | (53,107) | 36,996 | | Weighted Average Number of Ordinary Shares Issued | 701,430,000 | 701,430,000 | | Basic (Loss)/Earnings Per Share | (7.57) HK cents | 5.27 HK cents | - The Board does not recommend the payment of any final dividend for the year ended December 31, 2022 (FY2021: Nil)[116][125] Receivables and Payables As of December 2022, net trade receivables decreased from HKD 391 million to HKD 221 million, but impairment provisions significantly increased from HKD 8.4 million to HKD 30.85 million, indicating higher credit risk, while trade and bills payables decreased from HKD 205 million to HKD 142 million Trade Receivables Movement (HKD Thousand) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Trade Receivables | 251,685 | 399,449 | | Less: Impairment Provision | (30,849) | (8,395) | | Trade Receivables — Net | 220,836 | 391,054 | Trade and Bills Payables (HKD Thousand) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Trade Payables | 103,349 | 161,311 | | Bills Payables | 38,835 | 43,295 | | Total | 142,184 | 204,606 | Management Discussion and Analysis This section provides an overview of the company's operational and financial performance, capital structure, liquidity, and future strategic outlook Business and Financial Review In 2022, the Group's overall performance declined due to the pandemic and market competition, with total revenue decreasing by 52% to HKD 195 million and gross margin falling from 29% to 24%, primarily driven by an 88% revenue reduction in the environmental governance business, further exacerbated by fair value changes in financial assets and increased impairment losses, resulting in a loss attributable to owners of the company of HKD 53.11 million - The Group's total revenue was approximately HKD 195 million, a decrease of approximately 52% from HKD 405 million in FY2021[111] - The overall gross profit margin was 24%, a 5 percentage point decrease from 29% in FY2021, primarily due to losses in the environmental governance business and increased raw material prices in the cigarette packaging business[158] - Net impairment loss on financial and contract assets was approximately HKD 28.41 million, an increase of approximately HKD 8.42 million year-on-year, mainly due to increased credit risk from specific agency service clients[30] - The Group recorded an unrealized loss of approximately HKD 28.43 million on financial assets at fair value through profit or loss (2021: HKD 11.73 million) due to unfavorable securities market conditions[53] - The loss attributable to owners of the company was approximately HKD 53.11 million, a decrease of approximately 244% from a profit of HKD 37 million in the prior year[186] Capital Structure, Liquidity, and Financial Resources As of December 2022, the Group's net assets were HKD 361 million with ample working capital, experiencing a net cash inflow from operating activities of HKD 54.89 million but a net cash outflow from investing activities of HKD 93.52 million, with capital expenditures significantly increasing to HKD 69.47 million and new bank borrowings of HKD 22.39 million, while no gearing ratio was presented Cash Flow Summary (HKD Thousand) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 54,891 | 38,836 | | Net Cash Used in Investing Activities | (93,518) | (16,825) | | Net Cash from/(Used in) Financing Activities | 20,234 | (58,353) | | Net Decrease in Cash and Cash Equivalents | (18,393) | (36,342) | | Cash and Cash Equivalents at Year End | 47,270 | 70,599 | - The Group's total capital expenditure was approximately HKD 69.47 million, a significant increase from HKD 6.24 million in the prior year[37] - As of the end of 2022, the Group incurred new bank borrowings of approximately HKD 22.39 million, repayable within one year[54] - As of the end of 2022, the Group's net assets were HKD 361 million, with a working capital surplus of HKD 255 million[118] Future Outlook and Prospects Looking ahead, with the easing of pandemic controls, the Group anticipates economic growth in 2023 and will continue its diversified development strategy, strengthening the cigarette packaging business while actively seeking new opportunities in wastewater treatment and ecological restoration projects to expand revenue streams and create shareholder value - The cigarette packaging business remains the Group's primary revenue source, and efforts will continue to strengthen customer relationships and seek new clients to expand market share[147] - The Group will invest more resources in identifying new wastewater treatment projects and exploring development opportunities in ecological restoration projects to increase market share[40] - Management will continue to adhere to the concentric diversification strategy, seeking business opportunities to create more value for shareholders[55] Corporate Governance and Other Information This section details the company's corporate governance practices and other relevant information, including compliance with codes and audit committee reviews Corporate Governance Practices The company is committed to maintaining high standards of corporate governance, having complied with most provisions of the Corporate Governance Code during the reporting period, with a noted deviation where the roles of Chairman and Chief Executive Officer are combined by Mr. Zheng Yisheng, which the Board believes does not create an imbalance of power given the current business scale - The Directors believe that the company has complied with the applicable code provisions of the Corporate Governance Code during the reporting period, with certain deviations[62] - The company deviated from code provision A.2.1, which states that the roles of Chairman and Chief Executive Officer should be separate; Mr. Zheng Yisheng concurrently holds both positions, but the Board believes this arrangement does not lead to an imbalance of power and authority[150][183] Audit Committee and Other Matters The Audit Committee, comprising three independent non-executive directors, has reviewed the annual results and accounting principles for the period, during which the company did not purchase, sell, or redeem any listed securities and maintained sufficient public float - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and the Group's annual results for the reporting period[48] - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[176] - The company maintained sufficient public float during the reporting period and up to the date of this announcement[153]