Financial Performance - Total revenue decreased by approximately 19.6% from about HKD 401.9 million in the year ended December 31, 2022, to about HKD 323.3 million in the year ended December 31, 2023[6]. - Profit for the year decreased by approximately 32.3% from about HKD 10.9 million in the year ended December 31, 2022, to about HKD 7.4 million in the year ended December 31, 2023[19]. - Gross profit increased to approximately HKD 26.6 million, with a gross margin of about 8.2%, compared to a gross profit of about HKD 25.7 million and a gross margin of about 6.4% in the previous year[15]. - Sales costs decreased by approximately 21.1% from about HKD 376.2 million to about HKD 296.7 million, primarily due to a reduction in the number and scale of projects undertaken[13]. - Administrative expenses decreased by about 5.6% to approximately HKD 18.9 million, mainly due to a reduction in employee salaries and discretionary bonuses[16]. - Other income and losses decreased significantly by approximately 61.2% from about HKD 3.1 million to about HKD 1.2 million, mainly due to the absence of a subsidy from the Hong Kong government’s employment support scheme[17]. - The return on equity was 4.8% for the year, down from 7.5% in 2022[41]. - The net cash generated from operating activities was HKD 39.2 million, compared to a net cash used of HKD 36.5 million in 2022[41]. Assets and Liabilities - As of December 31, 2023, the total assets of the group were approximately HKD 296.9 million, compared to HKD 295.0 million in 2022[20]. - The group had zero interest-bearing loans and borrowings as of December 31, 2023, down from HKD 10.0 million in 2022[20]. - The current ratio as of December 31, 2023, was approximately 2.0 times, an increase from 1.9 times in 2022[20]. - The debt-to-equity ratio was zero as of December 31, 2023, compared to 6.9% in 2022[21]. Employee and Workforce - The group employed a total of 132 employees as of December 31, 2023, unchanged from 2022, with total employee costs amounting to approximately HKD 63.1 million, up from HKD 58.3 million in 2022[33]. - Employee turnover rate decreased to 23% in 2023 from 55% in 2022, with 31 employees leaving out of 132[171]. - Total training hours for male employees increased to 330 in 2023, with a training participation rate of 35%[177]. - Female representation in the workforce increased to 9.1% in 2023 from 7.6% in 2022[170]. - The number of employees aged 41 to 60 increased to 64 in 2023 from 61 in 2022[170]. - All management employees received 100% training participation in both years[177]. Corporate Governance - The company emphasizes the importance of good corporate governance for long-term success and sustainable development, adhering to the corporate governance code[73]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a strong independent element[78]. - The company has adopted a code of conduct for directors' securities trading, confirming compliance with the standards set forth in the listing rules[87]. - The board has established mechanisms to ensure high independence, with at least three independent non-executive directors and one-third of the board being independent[91]. - The company is committed to reviewing its corporate governance policies and practices regularly to ensure compliance with legal and regulatory requirements[76]. Environmental Impact - The total electricity consumption for the year 2023 was 111,641 kWh, an increase from 104,297 kWh in 2022, resulting in an electricity density of 2.30 kWh per employee per day[163]. - The total water consumption for the year 2023 was 56 cubic meters, with a water density of 0.001 cubic meters per employee per day, consistent with the previous year[163]. - The total greenhouse gas emissions for 2023 amounted to 97.75 tons, up from 90.3 tons in 2022, with direct emissions (Scope 1) at 6.23 tons and indirect emissions (Scope 2) at 70.33 tons[160]. - The company has implemented measures to reduce environmental impact, including recycling refrigerants and promoting high-efficiency equipment to clients[158]. - The company has complied with all relevant waste disposal regulations in Hong Kong during the year[158]. Future Outlook - The construction market in Hong Kong is expected to remain highly competitive in 2024, influenced by rising operational costs and a slowdown in economic growth[7]. - Future opportunities and challenges for the company will be influenced by the development of the Hong Kong property market and factors affecting labor and material costs[11]. Shareholder Communication - The company has established multiple channels for communication with shareholders and investors, including annual and interim reports, announcements, and a dedicated website[145]. - The company encourages shareholders to attend general meetings in person or appoint representatives to vote on their behalf[146]. - The company encourages shareholders to provide updated contact information to ensure effective communication[157]. Risk Management - The board has established a risk management framework to identify, assess, and mitigate risks, with management responsible for its implementation and effectiveness[130]. - The company has adopted a three-line risk management approach to ensure effective risk identification and monitoring[134].
立基工程控股(01690) - 2023 - 年度财报