Financial Performance - Revenue for the year 2023 was HKD 1,008,101, an increase of 23.1% from HKD 819,302 in 2022[1] - Gross profit for 2023 was HKD 129,565, compared to HKD 114,023 in 2022, reflecting a growth of 13.6%[1] - The company reported a pre-tax profit of HKD 57,258, up from HKD 49,268 in the previous year, an increase of 16.4%[1] - The net profit attributable to the company's owners for the year was approximately HKD 22,168,000, a decrease of about 21.0% from HKD 28,065,000 in 2022[52] - Basic and diluted earnings per share for 2023 were HKD 2.77, down from HKD 3.51 in 2022, a decline of 21%[1] - Basic earnings per share for 2023 were HKD 2.77, down from HKD 3.51 in 2022, reflecting a decrease of approximately 21%[29] Expenses and Liabilities - Administrative expenses decreased to HKD 71,023 in 2023 from HKD 74,602 in 2022, a reduction of 4.8%[1] - The company's total liabilities increased to HKD 669,170 in 2023, up from HKD 620,142 in 2022, representing an 7.9% rise[3] - Trade payables increased to HKD 75,689 in 2023 from HKD 52,706 in 2022, marking a rise of 43.5%[3] - The income tax expense for 2023 was HKD 3,765, a decrease from HKD 4,789 in 2022, representing a reduction of approximately 21.4%[25] - Financial costs increased by approximately 90.7%, from HKD 16,473,000 in 2022 to HKD 31,417,000 in 2023, mainly due to higher bank borrowing and interest rates[61] Assets and Equity - The total equity and liabilities amounted to HKD 870,322 in 2023, compared to HKD 799,126 in 2022, indicating a growth of 8.9%[3] - The total assets of the group as of December 31, 2023, amounted to HKD 870,322,000, an increase of 8.9% from HKD 799,126,000 in the previous year[102] - The group's equity attributable to owners was HKD 201,152,000, reflecting a growth of 12.3% compared to HKD 178,984,000 in the prior year[102] - The group's debt-to-equity ratio as of December 31, 2023, was approximately 66.5%, slightly improved from 66.8% on December 31, 2022[71] Revenue Sources - Major customer revenues for 2023 included Customer A at HKD 203,252, Customer B at HKD 174,833, and Customer C at HKD 144,234, with Customer B showing a decrease from HKD 230,599 in 2022[21] - Other income decreased significantly by approximately 81.5%, from HKD 12,405,000 in 2022 to HKD 2,295,000 in 2023, primarily due to the absence of government subsidies under the "Employment Support Scheme" in Hong Kong[53] Employee and Operational Insights - Employee costs, including director remuneration, were approximately HKD 119,216,000 for the year ended December 31, 2023, compared to HKD 116,827,000 in 2022[80] - The group employed a total of 238 employees as of December 31, 2023, down from 272 employees a year earlier[93] - The number of ongoing renovation projects increased to 51 in 2023 from 46 in 2022, with a total contract value of approximately HKD 4,129 million compared to HKD 3,822 million in 2022[65] Future Outlook and Strategy - The company anticipates that 2024 will be a challenging year due to high interest rates, inflation, and talent shortages, but expects stable long-term growth in the renovation sector in Hong Kong[58] - The company plans to continue leveraging big data and artificial intelligence to enhance project management efficiency and create long-term value for stakeholders[67] - The board maintains a cautiously optimistic outlook for the group's long-term business prospects, emphasizing careful monitoring of operational cash management for sustainable development in 2024[68] Corporate Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to review internal controls, risk management, and financial reporting matters[126] - The company has complied with all corporate governance code provisions as of December 31, 2023[123] - The independent auditor confirmed that the figures in the preliminary announcement are consistent with the draft consolidated financial statements for the year ending December 31, 2023[120] Dividends and Share Options - The company did not recommend any final dividend for the year ended December 31, 2023, consistent with the previous year[35] - The board does not recommend the payment of a final dividend for the year ended December 31, 2023[83] - As of December 31, 2023, there are no unexercised options granted under the share option scheme[117] - The share option scheme was adopted on June 16, 2020, and is effective until June 15, 2030, aimed at recognizing contributions from eligible participants[116]
德合集团(00368) - 2023 - 年度业绩