Financial Performance - The total revenue of the Group increased by 5.03% to HK$3,851.62 million for the year ended 31 December 2023, compared to HK$3,667.08 million in 2022[10]. - The net profit attributable to equity shareholders of the Company was HK$25.32 million, up from HK$18.73 million in 2022[10]. - Revenue for 2023 increased by approximately HK$184.54 million, or 5.03%, from HK$3,667.08 million in 2022 to HK$3,851.62 million in 2023[57]. - Revenue from general building business rose by approximately HK$242.78 million, or 8.74%, from HK$2,777.98 million in 2022 to HK$3,020.76 million in 2023[58]. - Revenue from civil engineering business decreased by approximately HK$24.94 million, or 4.08%, from HK$611.80 million in 2022 to HK$586.86 million in 2023[59]. - Gross profit increased to HK$97.90 million in 2023 from HK$77.41 million in 2022, with a gross profit margin of 2.54% compared to 2.11% in the previous year[66][67]. - Other revenue decreased significantly from HK$33.02 million in 2022 to HK$5.37 million in 2023, primarily due to the absence of government subsidies received in 2022[68][71]. - Finance costs rose to HK$8.28 million in 2023 from HK$3.18 million in 2022, attributed to increased bank interest rates and average loan balances[76][81]. - Administrative expenses remained relatively stable at HK$63.27 million in 2023 compared to HK$63.16 million in 2022[75][80]. - The share of results from a joint venture showed a reduced net loss of HK$1.02 million in 2023, down from a loss of HK$2.13 million in 2022[77][82]. - Income tax expense decreased to HK$5.87 million in 2023 from HK$24.26 million in 2022, mainly due to the reversal of deferred tax assets[78][83]. Project Awards and Ongoing Projects - The Group was awarded 17 new projects in Hong Kong with a total original contract sum of approximately HK$7,373 million, compared to HK$4,163 million in 2022[11]. - The outstanding value of ongoing projects as of 31 December 2023 was approximately HK$11.7 billion, an increase from HK$7.1 billion in 2022[11]. - As of December 31, 2023, the Group had 10 projects for general building works and 24 projects for civil engineering works on hand, with a total original contract sum of approximately HK$17 billion[32]. - Major projects included the construction of public rental housing with an original contract sum of HK$3,740 million, which recognized revenue of HK$383 million during the financial year[33]. - The Group has been awarded new contracts for general building and civil engineering works post-year-end, including maintenance projects with a total contract sum of approximately HK$2,233.1 million[46]. - The company has ongoing projects with a total contract value of HK$2,624.0 million for public housing developments, recognizing revenue of HK$682.6 million in 2023[36]. Dividends and Shareholder Returns - A final dividend of HK4.0 cents per share is recommended to reward shareholders for their support[19]. - The proposed final dividend is set at HK$0.04 per share to reward shareholders for their support[21]. Operational Challenges and Market Conditions - The management acknowledges challenges such as geopolitical tensions and rising interest rates affecting the construction business[13]. - The Group's business remains primarily focused in the Hong Kong market during the year[61]. - The construction industry in Hong Kong is expected to grow due to strong housing needs and government infrastructure projects, but future growth depends on the property market's prosperity[101]. - The Group's primary customer remains the Hong Kong government, and any reduction or delay in government spending could adversely affect business performance[91]. Environmental, Social, and Governance (ESG) Initiatives - SFK Construction is committed to integrating ESG factors into daily operations, aiming to prevent environmental pollution and minimize waste production at construction sites[189]. - The company has established an ESG Working Group led by an Executive Director to manage ESG issues and set environmental and social goals for sustainability[190]. - Measurable targets have been set for key ESG aspects, including gas emissions, waste production, energy use efficiency, and water use efficiency, with regular monitoring of KPIs[191]. - The Group aims for zero compromise in occupational health and safety through diligent management and staff training[196]. - The Group supports various non-profit organizations through sponsorships and donations, especially during the COVID pandemic[197]. - The Group emphasizes the well-being of the community alongside the safety of its workers[199]. - The Group has participated in community relief activities during challenging times, demonstrating its commitment to social responsibility[197]. Financial Position and Liquidity - Cash and bank balances (excluding pledged deposits) increased to HK$348.96 million in 2023, compared to HK$262.56 million in 2022, showing an improvement in cash reserves[109]. - The Group maintained a healthy liquidity position with cash and cash equivalents of HK$348.96 million as of December 31, 2023, up from HK$262.56 million in 2022[135]. - The current ratio of the Group was 1.20 as of December 31, 2023, slightly down from 1.25 in 2022[135]. - The Group had bank loans of approximately HK$240.00 million as of December 31, 2023, with variable interest rates ranging from 6.62% to 6.77% per annum[136]. - The Group's gearing ratio increased to 64.59% as of December 31, 2023, compared to 13.45% in 2022[145]. - Net current assets were HK$316.88 million as of December 31, 2023, slightly up from HK$312.03 million in 2022[146]. Employee and Operational Metrics - As of December 31, 2023, the Group's total remuneration was approximately HK$499 million, with 1,352 employees, including 1,285 full-time and 67 part-time employees[115]. - The accident rate for the Group was 9.5 per 1,000 workers in 2023, higher than 5.22 per 1,000 workers in 2022, but still significantly lower than the industry average of 29.1 per 1,000 workers[109]. - The average accident rate per thousand workers was 9.5, significantly lower than the industry average of 29.1 in 2022[112]. Compliance and Regulatory Issues - The Group's business is subject to strict regulatory compliance, and failure to maintain necessary licenses could severely impact operations[90]. - The Group was fined a total of HK$172,000 for 18 summonses related to violations of the Factories and Industrial Undertaking Ordinance during the year[128].
新福港(01447) - 2023 - 年度财报