Financial Performance - The company generated revenue of approximately HKD 237.7 million for the fiscal year 2023, an increase of about 18.7% from HKD 200.2 million in 2022[8]. - The net profit for the fiscal year 2023 was approximately HKD 5.4 million, compared to HKD 5.2 million in 2022, reflecting a slight increase of about 3.8%[8]. - Other income and gains for the fiscal year 2023 were approximately HKD 3,300,000, a decrease of about 46.9% compared to the previous fiscal year, primarily due to reduced government subsidies[28]. - The group recorded a profit of approximately HKD 5,400,000 for the fiscal year 2023, compared to HKD 5,200,000 in 2022, reflecting a slight increase[28]. - Cash and cash equivalents held by the group as of December 31, 2023, were approximately HKD 24,200,000, down from HKD 38,400,000 in 2022[30]. - The total equity of the group increased to approximately HKD 143,200,000 as of December 31, 2023, compared to HKD 137,100,000 in 2022[31]. - The net current liabilities of the group were approximately HKD 62,900,000 as of December 31, 2023, down from HKD 74,100,000 in 2022[32]. - The group invested approximately HKD 111,500,000 in the acquisition of property, plant, and equipment during the year, compared to HKD 74,000,000 in 2022[34]. - The debt-to-equity ratio of the group decreased to 1.5 as of December 31, 2023, from 1.6 in 2022, mainly due to a reduction in interest-bearing loans[39]. Revenue Breakdown - Revenue from machinery sales increased by approximately 73.3% to HKD 15.8 million, driven by increased demand for new cranes in Hong Kong and Singapore[16]. - Rental income from machinery rose by approximately 7.1% to HKD 175.2 million, attributed to higher demand in the crane rental markets of Hong Kong and Singapore[16]. - Service revenue increased by approximately 72.3% to HKD 44.6 million, primarily due to rising service demand in Hong Kong[16]. - Revenue from the Hong Kong segment surged by approximately 111.5% to HKD 79.6 million, mainly due to an increase in the number and usage rate of cranes[17]. - The Singapore segment's revenue grew by approximately 33.9% to HKD 116.9 million, driven by an increase in the number of heavy tower cranes[18]. - The China segment experienced a decline in revenue of approximately 45.2% to HKD 41.2 million, primarily due to a slowdown in construction activities by real estate developers[19]. Future Outlook - The company plans to invest in heavy machinery to enhance production efficiency and diversify service offerings, aiming for a higher market share[9]. - The company is optimistic about future construction demand and intends to expand its crane rental business through significant investments and project management expertise[10]. - The construction industry demand in Singapore is projected to increase to SGD 32 billion to SGD 38 billion in 2024, compared to SGD 33.8 billion in 2023, indicating strong market demand for construction services[47]. - The Hong Kong government has identified sufficient land to build approximately 308,000 public housing units over the fiscal years 2024 to 2025, with an average annual completion of over 19,000 private housing units expected in the next five years[48]. - The potential supply of new private residential units in the next 3 to 4 years is estimated to be around 109,000 units, indicating a significant increase in construction projects[48]. - The demand for tower cranes is anticipated to rise significantly due to ongoing public and private construction projects, including traditional public housing and hospital expansion works, expected to last for about 4 to 5 years[48]. Corporate Governance - The company has adhered to the corporate governance code as stipulated by the Hong Kong Stock Exchange for the year ending December 31, 2023[111]. - The board of directors consists of three executive directors and three independent non-executive directors[82]. - The company has established a nomination committee to recommend candidates for the appointment and re-election of directors[119]. - All independent non-executive directors have confirmed their compliance with the independence requirements under the listing rules[123]. - The company provided training materials to directors and senior management to enhance their knowledge and skills related to corporate governance[122]. - The board has mechanisms in place to ensure independent opinions are communicated effectively, enhancing decision-making objectivity[124]. - The company has maintained a good corporate governance framework to strengthen management accountability and investor confidence[111]. - The chairman and CEO roles are separated, with Guo Yingcheng serving as chairman and Zheng Wei as CEO[114]. - The company has committed to continuous improvement in corporate governance practices to support long-term development[111]. Environmental, Social, and Governance (ESG) Performance - The company reported a focus on environmental, social, and governance (ESG) performance, aligning with the Hong Kong Stock Exchange's guidelines for ESG reporting[176]. - The company emphasizes sustainable development and risk management related to ESG issues, aiming to enhance operational resilience and compliance with relevant laws and regulations[177]. - The company has established a communication policy to strengthen engagement with shareholders and investors through its website, providing updates on business operations and financial information[173]. - The company aims to provide a balanced and consistent disclosure of ESG data, allowing for comparisons with industry standards and previous performance[181]. - The company has implemented a model to analyze environmental and social aspects based on continuous communication with stakeholders[181]. - The company’s ESG report includes qualitative and quantitative data to demonstrate its commitment to sustainable development and good performance[177]. - The company successfully reduced total solid waste by 82.54% through recycling construction waste in its Singapore operations in 2023[182]. - The board emphasizes the importance of integrating sustainability into every aspect of the business to achieve corporate growth[182]. - Stakeholder engagement is a core mission, with a focus on understanding their perspectives to assess potential impacts on future business activities[183]. - The company conducted a stakeholder importance assessment survey to identify key concerns and interests related to environmental, social, and governance (ESG) issues[188]. - The importance analysis matrix identified employee compensation, environmental protection measures, and anti-corruption policies as critical issues for stakeholders[191]. - The company is committed to maintaining open communication channels with both internal and external stakeholders to align with long-term sustainability goals[183]. - The company plans to continue monitoring ESG data and set new targets for future improvements[182]. Shareholder Engagement - The company emphasizes the importance of timely and effective communication with shareholders to build investor confidence[165]. - The dividend policy aims to provide reasonable returns to shareholders while considering long-term interests and sustainable development[168]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months of their request[169]. - Shareholders can direct inquiries to the board via email or by attending annual and special general meetings for direct engagement[170]. - The board has reviewed the implementation and effectiveness of the shareholder communication policy, ensuring direct interaction opportunities[167]. Risk Management - The company has adopted the COSO Enterprise Risk Management framework to enhance its risk management processes and ensure all significant risks are identified and managed appropriately[156]. - The board confirmed that it will continue to monitor the risk management and internal control systems at least annually, ensuring compliance with financial, operational, and regulatory oversight[155]. - The company conducted a comprehensive risk assessment based on COSO Enterprise Risk Management, identifying key risks and action plans to mitigate them[159]. - An external independent consultant was appointed to perform internal audit functions, resulting in a three-year internal audit plan approved by the board[163]. - The board confirmed the effectiveness of the group's risk management and internal control systems, committing to continuous improvement[163].
佳兆业资本(00936) - 2023 - 年度财报