Revenue and Financial Performance - The Group's annual revenue for the year ended December 31, 2023, achieved approximately MOP200.0 million, marking a significant milestone in revenue growth[18] - The Group recorded total revenue of approximately HK$258.9 million for the Year 2023, a decrease of approximately HK$22.4 million or 8.0% from HK$281.3 million in 2022[36] - The Group generated project revenue of HK$236.7 million in Hong Kong for the Year 2023, compared to HK$169.7 million in 2022, reflecting a significant increase[41] - The overall gross profit decreased to approximately HK$19.5 million for the Year 2023 from approximately HK$23.2 million in 2022, with the gross profit margin declining from 8.2% to 7.5%[53] - The cost of sales for the Year 2023 amounted to approximately HK$239.4 million, representing a decrease of 7.3% from HK$258.2 million in 2022[50] - The Group reported a net loss of approximately HK$8.0 million for 2023, compared to a net loss of approximately HK$6.7 million in 2022[73] - The Group's gross profit decreased from approximately HK$23.2 million in 2022 to approximately HK$19.5 million in 2023, with a gross profit margin decline from about 8.2% to approximately 7.5%[58] - Other income for the Group amounted to approximately HK$1.2 million in 2023, down from approximately HK$1.7 million in 2022, primarily due to a one-off government grant received in 2022[56] - The Group's other losses increased significantly to approximately HK$2.8 million in 2023 from approximately HK$95,000 in 2022, attributed to impairment of property, plant, and equipment[57] Project Awards and Operations - The Group continued its strategy of diversifying market risks by engaging in E&M engineering projects in Hong Kong through its wholly owned subsidiary, SEM Resources Limited[12] - The scope of E&M engineering works primarily included supply, installation, and maintenance of electrical systems for commercial and residential developments, hotel renovations, and sports venues in Macau and Hong Kong[13] - The Group was awarded a project for the installation and supply of electrical systems in a residential and commercial development project at Taipa, Macau, with an initial contract sum of approximately MOP138.7 million[18] - A project awarded in 2019 for a hotel development at Lago Nam Van, Macau, had an initial contract sum of approximately MOP168.8 million, including a provisional sum of MOP13.6 million[18] - Initial contract sums for projects awarded in 2021 included approximately MOP123.0 million for a hospital project and HK$358.6 million for a sports park project[21] - The initial contract sum for a casino resort project awarded in 2022 was approximately MOP27.8 million[22] - SEM Resources was awarded projects in 2023 to install electrical systems for converting an industrial building to a commercial building[23] - The Group's backlog as of December 31, 2023, included 14 E&M engineering services projects with an aggregate outstanding contract sum of approximately HK$267.2 million[35] Market Conditions and Challenges - The Group recorded a net loss for the Year 2023, with a slight decrease in revenue attributed to a loss-making project in Macau and increased labor costs in Hong Kong and Macau markets[26] - Increased labor costs and material costs in Macau and Hong Kong markets have led to lower profit margins due to fierce competition in the construction market[26] - The Group faced operational challenges in 2023, including workforce shortages and project delays, which contributed to the revenue decline[36] - The management is cautiously optimistic about the E&M markets in Macau and Hong Kong post-epidemic and aims to capture new market opportunities[42] Strategic Direction and Future Outlook - The Group aims to stabilize revenue during the recovery phase by actively pursuing additional E&M engineering projects, particularly in the Hong Kong market[27] - The Group's strategy includes focusing on electrical-related E&M engineering works, enhancing its competitive edge in the market[10] - The Group remains committed to exploring new projects within its specialized market segment to ensure revenue growth[27] - The Group's business outlook for the upcoming year is positive, driven by high market demand and opportunities for growth, supported by low debt levels and robust liquidity[111] - The Group aims to expand its operations by actively seeking additional E&M engineering services projects in Macau and Hong Kong[110] - The Group plans to diversify risks by seeking investment opportunities in various industries within the Greater China area[112] - The Hong Kong SAR Government has announced major infrastructure projects that are expected to drive demand for E&M construction services[111] Governance and Management - The Board of Directors consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors[134] - Mr. MK Wan, aged 62, is the chairman and executive director, responsible for overall strategic planning and management of the Group's business development[134] - The Group's strategic direction is influenced by the extensive experience of its directors in the E&M engineering industry[136] - The company is committed to achieving a high standard of corporate governance, which is essential for safeguarding shareholder interests and enhancing corporate value[171] - The company has complied with the Corporate Governance Code during the Year 2023, except for a deviation from code provision C.2.1 regarding the separation of the roles of chairman and chief executive officer[172] - The organizational culture emphasizes robust corporate governance, including employee engagement, retention, and comprehensive training[180] - The independent non-executive Directors represent more than one-third of the Board, satisfying regulatory requirements[199] Financial Position and Capital Management - As of December 31, 2023, the Group had cash and cash equivalents of approximately HK$35.9 million, an increase from approximately HK$19.7 million as of December 31, 2022[80] - The working capital as of December 31, 2023, was approximately HK$183.4 million, down from approximately HK$187.7 million as of December 31, 2022[81] - Total equity attributable to owners of the Group as of December 31, 2023, was approximately HK$209.1 million, compared to approximately HK$217.1 million as of December 31, 2022[81] - The gearing ratio as of December 31, 2023, was approximately 24.3%, slightly up from approximately 23.6% as of December 31, 2022[82] - The Group has minimal exposure to foreign currency risk, as most transactions are denominated in MOP or HK$, and currently does not have a foreign currency hedging policy[84] - The Group is exposed to interest rate risk, with bank borrowing based on a contracted interest rate at prime rate less 2.55% per annum, and currently has no interest rate hedging policy[90] Human Resources and Staff Management - Total staff costs for the Year 2023 were approximately HK$31.3 million, an increase from approximately HK$25.2 million in Year 2022[119] - As of 31 December 2023, net proceeds from the Listing amounted to approximately HK$71.0 million, with significant reallocations to strengthen manpower in the Hong Kong market[124] - The Group has reorganized operating units and appointed new leaders to enhance governance and business development in emerging technology and market segments[113]
澳达控股(09929) - 2023 - 年度财报