ANALOGUE HLDGS(HK:01977)2024-04-25 08:30Financial Performance - For the fiscal year ending December 31, 2023, the company achieved a profit attributable to shareholders of HKD 251.5 million, representing a year-on-year increase of 119.5% from HKD 114.6 million in the fiscal year 2022[2]. - The total revenue for the fiscal year 2023 was HKD 6.133 billion, a slight decrease from HKD 6.475 billion in the fiscal year 2022[13]. - Gross profit for 2023 was HKD 833.3 million, down 17.7% from HKD 1,011.5 million in the previous year[86]. - Basic earnings per share rose to HKD 0.18, up from HKD 0.08 in 2022, marking a 125% increase[86]. - The adjusted profit attributable to the company's owners for the fiscal year 2023 is HKD 249.4 million, excluding one-time impacts from healthcare contract provisions[135]. - The group reported a net profit of HKD 128.4 million for the fiscal year 2023, compared to a net loss of HKD 33.3 million in the fiscal year 2022[187]. Revenue and Contracts - The company secured new contracts worth HKD 4.113 billion in the fiscal year 2023, compared to HKD 4.803 billion in the fiscal year 2022[4]. - The company has a backlog of contracts valued at HKD 6.1 billion, indicating strong future revenue potential[100]. - The company secured new maintenance contracts valued at HKD 600 million in 2023, compared to HKD 415 million in the fiscal year 2022, enhancing recurring revenue sources[137]. - Revenue from the building services engineering segment for the fiscal year 2023 was HKD 3.736 billion, a decrease from HKD 4.257 billion in 2022[150]. - The environmental engineering segment generated revenue of HKD 1.356 billion in 2023, up from HKD 1.234 billion in 2022, reflecting a growth of approximately 9.9%[153]. Strategic Initiatives and Acquisitions - The company completed the acquisition of two UK-based elevator companies, marking a strategic milestone in its global market expansion strategy[3]. - The group has successfully acquired two companies in the UK, with JCW becoming a majority-controlled subsidiary and Precision a wholly-owned subsidiary[194]. - The company launched an innovative water and wastewater treatment solution called "AlgoWater," utilizing digital twin technology[110]. - The company is focused on expanding its market presence and enhancing its engineering capabilities through strategic appointments and leadership transitions[56]. Innovation and Technology - The company is focused on developing innovative solutions, including AI-driven technologies and energy optimization, to maintain its market leadership[10]. - The company has developed multiple technological applications in environmental engineering and information technology, reinforcing its market leadership[134]. - The company has successfully implemented advanced technologies in over 50% of its building services engineering projects, enhancing efficiency, quality, and safety[160]. Corporate Governance and Leadership - The company has adopted the principles and code provisions of the Corporate Governance Code as a benchmark for its corporate governance practices[66]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting year[67]. - The company appointed Mrs. Yvonne Law as an independent non-executive director effective immediately after the annual general meeting on June 27, 2023[60]. - Leadership changes include Dr. Mak being appointed as Executive Director and Chairman of the Board effective March 1, 2024[80]. Sustainability and Social Responsibility - The company is focusing on sustainable development and aims to operate in an environmentally and socially responsible manner[85]. - The company received multiple awards for its contributions to green building and sustainable practices, including the Platinum Award for outstanding ESG achievements[34]. - The company aims to enhance its global business footprint by introducing professional services to more markets, focusing on sustainable development[134]. Financial Position and Ratios - The company's asset-to-equity ratio increased to 15.1% as of December 31, 2023, compared to 13.5% as of December 31, 2022[21]. - The current ratio decreased to 1.4 times in 2023 from 1.5 times in 2022, indicating a slight decline in liquidity[36]. - The asset-liability ratio increased to 15.1% in 2023 from 13.5% in 2022, indicating a rise in financial leverage[36]. - The group maintained a strong cash level with bank balances and cash amounting to HKD 906.4 million as of December 31, 2023[184]. Employee Engagement and Culture - The company is actively enhancing employee engagement through initiatives like the ARWA Club, promoting a healthy work environment[24]. - The group aims to promote a diverse workplace culture by signing the "Racial Diversity and Inclusion Employer Charter"[108].