Financial Performance - The Group's revenue for the year ended December 31, 2023, was approximately HK$86.7 million, a decrease of approximately HK$35.8 million or 29.2% compared to HK$122.5 million for the year ended December 31, 2022[13]. - The gross loss reported for the year was approximately HK$21.5 million, primarily due to competitive project pricing, delays in certification of works, and increased direct costs[13]. - The gross loss for the Year amounted to approximately HK$21.5 million, a decrease of approximately 24.9% compared to a gross loss of approximately HK$28.6 million in 2022[40]. - The gross loss margin for the Year was approximately 24.8%, compared to approximately 23.4% in 2022[40]. - Other gains for the Year amounted to a net gain of approximately HK$3.4 million, representing an increase of approximately 293.5% compared to a net loss of approximately HK$1.8 million in 2022[41]. - Administrative expenses increased by approximately 15.8% to approximately HK$9.1 million, up from approximately HK$7.9 million in 2022[42]. - The net loss attributable to owners of the Company for the year was approximately HK$51.6 million, a decrease of approximately HK$4.6 million or approximately 8.2% from approximately HK$56.2 million for the year ended December 31, 2022[49]. - The gearing ratio as of December 31, 2023, was approximately 18.1%, compared to approximately 9.3% as of December 31, 2022[66]. Market Conditions - Hong Kong's GDP grew by 3.2% year-on-year in 2023, driven by the recovery of inbound tourism and private consumption, but ongoing global demand weakness and tightened monetary conditions limited a full rebound[17]. - The economic outlook for Hong Kong in 2024 is expected to remain positive but at a slower pace, supported by resilient consumption and government stimulus[17]. - The recent relaxation of property cooling measures in Hong Kong has positively impacted the property market, although economic performance is heavily reliant on the Mainland economy[17]. - The Group's management acknowledges the ongoing external and domestic uncertainties that may prolong the resolution of current challenges[17]. Business Strategy - The Group is exploring business opportunities and expanding geographical coverage beyond the Hong Kong market to enhance future development and strengthen revenue bases[18]. - The Group anticipates that diversification of its business will provide better returns to shareholders[18]. - The Group plans to maintain its market share by closely monitoring market conditions and improving competitiveness through quality work[34]. - The Group anticipates continued government investment in infrastructure despite challenges in the construction market due to increased competition from Mainland China companies[33]. Human Resources - As of December 31, 2023, the Group employed a total of 14 employees, down from 16 employees as of December 31, 2022[79]. - Total staff costs for the year were approximately HK$5.6 million, compared to approximately HK$5.3 million for the year ended December 31, 2022, reflecting a year-on-year increase of about 5.66%[79]. - The Group has not experienced significant problems with employees due to labor disputes, nor difficulties in recruitment and retention of experienced staff during the year[81]. - The Group's human resource management aims to reward and recognize well-performing staff through competitive remuneration and performance appraisal systems[101]. Share Option Scheme - The Company has adopted a share option scheme to incentivize Directors and eligible employees, which is valid for ten years starting from July 22, 2019[114]. - The maximum number of shares available for issue under the Share Option Scheme is 26,000,000 shares, approximately 8.33% of the shares in issue as of December 31, 2023[122]. - The maximum entitlement of each participant under the Share Option Scheme is limited to 1% of the shares in issue at the date of grant, requiring shareholder approval for any excess[124]. - The subscription price for any share option granted under the Share Option Scheme must not be less than the highest of the closing price on the date of grant, the average closing price for the five trading days preceding the grant, or the nominal value of a share[131]. - As of the date of the annual report, the remaining life of the Share Option Scheme is approximately 5 years and 3 months, with no options granted or exercised during the year[132]. - The Company has no outstanding options as of December 31, 2023, as none were granted since the adoption of the Share Option Scheme[132]. Customer and Supplier Relationships - The Group's major customers include construction work companies engaged in public and/or private construction projects in Hong Kong, with long-term business relationships established[102]. - The Group has developed long-standing relationships with sub-contractors and suppliers, ensuring quality and sustainable goods and services[103]. - The largest customer accounted for approximately 80.8% of total revenue for the year ended December 31, 2023, compared to 49.0% in the previous year[192]. - The five largest customers collectively contributed 97.7% of total revenue for the year ended December 31, 2023, slightly down from 98.0% in 2022[192]. Corporate Governance - The Board has resolved not to recommend the declaration of a final dividend to shareholders for the year[82]. - As of December 31, 2023, there are no reserves available for distribution to shareholders, a decrease from HK$72.2 million in 2022[112]. - The Company has adopted a dividend policy to allow shareholders to participate in profits while retaining adequate reserves for future growth[142]. - In deciding whether to propose a dividend, the Board will consider the general financial condition of the Group[143]. - The Board will review the dividend policy periodically, but there is no assurance that dividends will be proposed or declared in any specific periods[149]. Related Party Transactions - All related party transactions of the Group are fully exempted from independent Shareholders' approval and disclosure requirements[195]. - There were no significant transactions, arrangements, or contracts related to the Group's business involving Directors or controlling shareholders during the year[157]. - The company has not disclosed any loans or significant transactions involving Directors or their connected entities during the year[152].
恒新丰控股(01920) - 2023 - 年度财报