Financial Performance - The total revenue for the year ended December 31, 2022, was approximately MOP 54.6 million, a decrease of about MOP 205.8 million or 79.0% from approximately MOP 260.4 million for the year ended December 31, 2021[7][16]. - The gross loss for the year ended December 31, 2022, was approximately MOP 34.9 million, a decrease of about MOP 62.6 million from approximately MOP 97.5 million for the year ended December 31, 2021, resulting in a gross loss margin of approximately 64.0%[17]. - The company recorded a loss of approximately 70.6 million MOP for the year ended December 31, 2022, compared to a loss of approximately 231.4 million MOP for the year ended December 31, 2021, a reduction of about 160.8 million MOP[36]. - The company recorded income tax expenses of approximately MOP 0.1 million for the year ended December 31, 2022, with an effective tax rate of approximately -0.2%[20]. - The total employee cost for the year ended December 31, 2022, was approximately 41.7 million MOP, down from approximately 49.8 million MOP in 2021, primarily due to a reduction in average working days[48]. - Administrative expenses increased slightly from approximately 30.9 million MOP in 2021 to approximately 31.7 million MOP in 2022, accounting for about 58.0% of total revenue in 2022[33]. Assets and Liabilities - The asset-liability ratio as of December 31, 2022, was approximately 646.7%, compared to about 108.0% as of December 31, 2021[23]. - The company's total equity decreased from approximately 74.5 million MOP as of December 31, 2021, to approximately 12.6 million MOP as of December 31, 2022, impacting the debt-to-equity ratio[39]. - The company's bank borrowings and overdrafts totaled approximately 81.2 million MOP as of December 31, 2022, compared to approximately 80.5 million MOP in 2021[38]. - As of December 31, 2022, the company had total cash and bank deposits of approximately 34.2 million MOP, a decrease of about 13.4% from approximately 39.5 million MOP in 2021[37]. Business Strategy and Market Position - The company aims to strengthen its market position in the Macau renovation industry by enhancing financial stability, expanding its customer base, and improving human resources[11]. - The company has established business relationships with major licensed gaming operators and other renovation contractors in Macau, which is expected to contribute to future success[14]. - The easing of COVID-19 restrictions in Macau since December 2022 is anticipated to lead to an increase in hotel and gaming projects, thereby improving the company's financial performance[15]. - The company plans to undertake more large-scale renovation projects as the number of tender opportunities is expected to rise following the relaxation of pandemic measures[12]. - The group is seizing opportunities to bid on potential projects to increase revenue over the next few years[167]. Corporate Governance - The board consists of seven directors, including three independent non-executive directors, ensuring sufficient independent opinions to protect the interests of the company and its shareholders[61]. - The board is responsible for formulating business policies and strategies, ensuring adequate resources and effective internal controls[77]. - The audit committee held eleven meetings during the reporting period to review the audited financial statements and discuss accounting policies[88]. - The remuneration committee held one meeting during the reporting period to review and recommend remuneration for directors and senior management[90]. - The nomination committee consists of one executive director and two independent non-executive directors, with the chairman being an executive director[92]. - The board held a total of fifteen meetings during the reporting period to review compliance with corporate governance and legal regulations[93]. - Independent non-executive directors are actively involved in providing independent judgment on strategy and performance matters[78]. - The company has established three committees: audit committee, remuneration committee, and nomination committee, each with defined terms of reference[86]. - The board believes that the participation of independent non-executive directors can safeguard the interests of all shareholders[80]. - The company has arranged appropriate insurance to protect directors and senior officers against legal actions arising from company affairs[78]. Risk Management and Compliance - The company has a comprehensive risk management and internal control system that is deemed sufficient and effective by the board[105]. - The board emphasizes that the risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatements[120]. - The group adheres strictly to the Securities and Futures Ordinance and ensures timely public disclosure of inside information, maintaining confidentiality until full disclosure[121]. - The company has engaged external auditors to provide assurance on its financial statements, ensuring transparency and accountability[106]. - The group maintains a zero-tolerance policy towards all forms of corruption, bribery, and extortion, emphasizing high ethical standards[152]. - There were no legal actions taken against the group or its employees regarding corruption during the fiscal year 2022[135]. - The group has implemented measures for customer due diligence and provides training related to anti-money laundering for employees[138]. Environmental and Social Responsibility - The company has implemented environmental and community engagement policies to minimize the social impact of its construction activities[112]. - The board and senior management have assessed sustainability issues and identified key ESG factors for monitoring[142]. - The group is committed to protecting employee health and safety, with comprehensive safety policies and measures in place[145]. - The group has not set specific targets for key performance indicators during the reporting period, but its environmental and social impacts are in line with industry standards[150]. Shareholder Information - The company does not recommend the payment of a final dividend for the year ended December 31, 2022[71]. - As of December 31, 2022, the number of issued shares was 504,650,000, with a par value of HKD 0.01 per share, an increase from 500,000,000 shares as of December 31, 2021[55]. - The net proceeds from the placement of shares amounted to approximately 7.9 million HKD, which was used to supplement working capital and general business operations[42]. - The net proceeds from the placement of 4,650,000 new shares amounted to approximately MOP 8,238,000, intended for loan repayment, working capital, and general business operations[55]. Financial Reporting and Accounting - The group's current tax liabilities are calculated based on taxable profits for the year, using tax rates enacted or substantively enacted before the end of the reporting period[186]. - Gains or losses from the sale or disposal of property and equipment are determined by the difference between the sale proceeds and the carrying amount of the asset, recognized in profit or loss[187]. - The group accounts for refundable rental deposits at fair value and includes any fair value adjustments as part of the cost of the right-of-use asset[191]. - Currency exchange differences arising from the settlement and remeasurement of monetary items are recognized in profit or loss during the period they occur[197]. - Government grants that compensate for incurred expenses or losses are recognized in profit or loss when receivable and presented under "other income"[198]. - The group transfers amounts previously recognized in other reserves to share premium when the granted shares vest[200].
伟鸿集团控股(03321) - 2023 - 年度财报