Financial Performance - For the Financial Year 2023, the Group's revenue increased by approximately HK$45.5 million to approximately HK$121.2 million, compared to approximately HK$75.7 million for the Financial Year 2022, representing a growth of approximately 60%[12] - The Group recorded a net profit of approximately HK$1.3 million in the Financial Year 2023, a significant recovery from a net loss of approximately HK$9.0 million in the Financial Year 2022[12] - The increase in net profit was primarily due to the rise in revenue and gross profit margin[12] - Gross profit increased from approximately HK$16.7 million in Financial Year 2022 to approximately HK$29.5 million in Financial Year 2023, with a gross profit margin improvement from approximately 22.1% to approximately 24.3%[29] - Administrative and other operating expenses rose by approximately HK$3.4 million, or approximately 13.5%, to approximately HK$28.5 million in Financial Year 2023[30] - The Group's revenue for the Financial Year 2023 was approximately HK$121.2 million, representing an increase of approximately 60.1% from approximately HK$75.7 million for the Financial Year 2022[28] Financial Position - As of December 31, 2023, the Group's current ratio improved to approximately 1.3 from approximately 0.9 in the previous year[38] - Total assets were approximately HK$71.5 million, financed by total liabilities of approximately HK$48.1 million and shareholders' equity of approximately HK$23.4 million[38] - The Group's cash and bank balances increased to approximately HK$11.9 million as of December 31, 2023, up from approximately HK$3.6 million in the previous year[38] - The gearing ratio significantly decreased to approximately 87.6% as of December 31, 2023, from approximately 286.7% in the previous year[39] - Capital expenditure for Financial Year 2023 was approximately HK$0.9 million, compared to HK$0.1 million in Financial Year 2022[40] Rights Issue and Capital Management - The Group completed a rights issue exercise, utilizing the net proceeds to strengthen its financial position and provide additional working capital[13] - On June 29, 2023, the Company completed a rights issue, issuing 80,640,000 rights shares at a subscription price of HK$0.185 per share, raising approximately HK$13.8 million in net proceeds[53] - As of December 31, 2023, the net proceeds from the rights issue have been fully utilized for general working capital[57][58] - The Company increased its authorized share capital from HK$10,000,000 to HK$20,000,000 by creating an additional 1,000,000,000 new unissued shares[52] Operational Efficiency and Market Outlook - The outlook for the Group remains cautiously optimistic, focusing on cost control and seeking new market opportunities in light of ongoing economic challenges in Hong Kong[14] - The Group is committed to maintaining operational efficiency and improving profitability through vigilant cost control measures[24] - Following the lifting of social distancing measures, the impact of the COVID-19 pandemic on the Group has been diminishing, allowing for a gradual return to normalcy[24] Employee and Labor Relations - Staff costs for the financial year 2023 were approximately HK$47.1 million, an increase from HK$36.6 million in the previous year[73] - The Group's employee count remained stable at 85 full-time employees as of December 31, 2023[78] - The Company has not experienced significant employee-related disruptions or difficulties in recruitment during the financial year 2023[72] - The Company emphasizes internal promotion and offers various job opportunities to existing staff, with remuneration packages including performance-based bonuses[74] - The Group maintained a stable relationship with suppliers and subcontractors, ensuring timely delivery of materials and services, which is crucial for project execution[76] Corporate Governance - The Audit Committee reviewed the Group's consolidated financial statements for the fiscal year 2023, confirming compliance with applicable accounting standards and adequate disclosures[96] - The company has maintained compliance with the corporate governance code throughout the Financial Year 2023, with some deviations noted regarding the roles of Chairman and CEO[101] - The company has confirmed that there are no known competitive interests from Directors or major shareholders during the Financial Year 2023[102] - The Company has established a code of conduct for securities transactions, ensuring all Directors adhere to the standards set forth[111] - The Board consists of four Directors, including one executive Director and three independent non-executive Directors, ensuring a strong independent element for independent judgement[175] Management and Board Composition - Mr. Cheung Shek On serves as both Chairman and CEO, with over 30 years of experience in the concrete demolition industry[115] - There were changes in the Board, with Mr. Tam Tak Kei Raymond resigning as an independent non-executive director in February 2023 and Mr. Kwok Shun Tim resigning as executive Director and Vice Chairman effective December 31, 2023[109] - The company has a strong management team with diverse backgrounds in finance, accounting, and construction, enhancing its strategic decision-making capabilities[135] - The management team is well-equipped to navigate market challenges and pursue growth opportunities in the construction sector[135] Risk Factors - The Company faces risks related to the availability of construction projects in Hong Kong and Macau, which can significantly impact operational results[60][65] - Labour shortages in the construction industry are pushing up daily wages, potentially affecting the Company's financial performance[63][69] Commitments and Liabilities - As of December 31, 2023, the Group had capital commitments of approximately HK$0.5 million for the purchase of property, plant, and equipment[81] - Pledged deposits of approximately HK$14.8 million were made to banks to secure banking facilities, up from approximately HK$14.6 million in the previous year[83] - There were no significant contingent liabilities for the Group as of December 31, 2023[82] - The Group did not engage in any significant investments, acquisitions, or disposals of subsidiaries during the fiscal year 2023[85] Dividend and Shareholder Matters - The company did not recommend the payment of a final dividend for the Financial Year 2023[110]
景联集团(01751) - 2023 - 年度财报