Financial Performance - Total revenue decreased from approximately HK$185.0 million for the year ended December 31, 2022, to approximately HK$143.4 million for the year ended December 31, 2023, representing a decline of about 22.5%[8]. - The group's gross profit decreased from approximately HKD 22.5 million for the year ended December 31, 2022, to approximately HKD 7.9 million for the year ended December 31, 2023, resulting in a gross profit margin decline from about 12.1% to approximately 5.5%[16]. - The company reported a net loss of HKD 30,321,000 for the year, compared to a loss of HKD 24,637,000 in 2022, representing a 23.3% increase in losses[181]. - Basic and diluted loss per share for 2023 was HKD 2.89, compared to HKD 2.35 in 2022, indicating a 23.0% increase in loss per share[181]. - Non-current assets decreased to HKD 7,361,000 in 2023 from HKD 33,519,000 in 2022, a decline of 78.0%[183]. - Current assets decreased to HKD 125,375,000 in 2023 from HKD 154,557,000 in 2022, a reduction of 18.9%[183]. - Total liabilities decreased to HKD 90,983,000 in 2023 from HKD 114,288,000 in 2022, a decrease of 20.4%[183]. - The company's equity decreased to HKD 41,471,000 in 2023 from HKD 71,792,000 in 2022, a decline of 42.3%[185]. - Cash generated from operating activities was HKD 7,454,000 in 2023, slightly up from HKD 7,262,000 in 2022[190]. - The company recognized a goodwill impairment of HKD 14,000,000 in 2023, compared to HKD 10,000,000 in 2022, reflecting a 40.0% increase in impairment[181]. - The net cash used in financing activities decreased to HKD 17,510,000 in 2023 from HKD 24,508,000 in 2022, indicating a reduction of approximately 28.5%[193]. - Cash and cash equivalents at the end of 2023 were HKD 362,000, down from HKD 10,869,000 at the beginning of the year, reflecting a significant decrease of 96.7%[193]. - The company reported a net decrease in cash and cash equivalents of HKD 10,507,000 in 2023, contrasting with a net increase of HKD 1,134,000 in 2022[193]. Project and Market Activity - The group undertook 182 projects generating revenue in the year ended December 31, 2023, compared to 156 projects in the previous year[12]. - The group secured 68 new projects with a total contract value of approximately HK$135.0 million as of the report date[12]. - The demand for RMAA and corrosion protection services remained stable during the reporting period[12]. - Future opportunities and challenges will continue to be influenced by the development of the Hong Kong property market and labor and material costs[13]. - The overall market conditions in the Hong Kong construction industry remained relatively stable, despite increased economic uncertainties[9]. Cost Management - Sales costs decreased from approximately HK$162.5 million for the year ended December 31, 2022, to approximately HK$135.5 million for the year ended December 31, 2023, a reduction of about 16.6%[15]. - Administrative expenses reduced by approximately HKD 6.7 million or 16.8%, from about HKD 39.8 million for the year ended December 31, 2022, to approximately HKD 33.1 million for the year ended December 31, 2023, primarily due to a cost control plan implemented in 2023[18]. - The group has implemented cost-cutting measures that are expected to save J million annually, improving overall profitability[101]. Governance and Compliance - The company has adopted a board diversity policy, considering various measurable categories such as gender, age, and professional experience[50]. - The board consists of seven members, including two executive directors and three independent non-executive directors[42]. - The company has established a strict code of conduct for securities trading by directors, with no violations reported for the year ending December 31, 2023[41]. - The company is committed to maintaining high standards of corporate governance to meet stakeholder expectations[46]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee[61]. - The Audit Committee consists of three independent non-executive directors, ensuring compliance with GEM listing rules and overseeing financial reporting integrity[62]. - The company emphasizes continuous professional development for directors, encouraging attendance at relevant seminars and training[59]. - The company has a structured approach to governance, ensuring compliance with policies and objectives[91]. Shareholder Engagement - The company has established procedures for shareholders to convene special general meetings under specific conditions[81]. - Shareholders can propose independent resolutions at general meetings to safeguard their interests and rights[80]. - The company has established multiple communication channels with shareholders and investors, including annual general meetings, annual reports, interim reports, and a dedicated website[87]. - The company is actively engaging with shareholders to address their inquiries and concerns during meetings[87]. Risk Management - The company has implemented a three-tier risk management approach to identify, analyze, assess, mitigate, and respond to risks[75]. - The board has reviewed the effectiveness of the risk management system and continues to monitor its performance regularly[74]. - The company aims to ensure effective risk management as a key component of its long-term business development strategy[74]. - The company emphasizes the importance of good risk management for achieving its strategic objectives[75]. Future Outlook - The group remains cautiously optimistic about the overall business outlook despite several challenging factors, including intense market competition and rising costs[9]. - The group aims to continue providing integrated services in RMAA, new construction projects, and corrosion protection engineering to retain existing clients and attract new ones[9]. Financial Obligations and Share Options - The company has not granted or agreed to grant any share options under its share option plan for the year ending December 31, 2023[132]. - The maximum number of share options that can be granted under the plan is capped at 10% of the total issued shares, which is 1,050,000,000 shares[135]. - Each eligible participant must pay HKD 1.00 to receive share options under the plan[134]. - The exercise price for any specific share option granted must be at least the higher of the closing price on the grant date or the average closing price over the five trading days preceding the grant date[138]. Auditor and Financial Reporting - The new auditor, Debo CPA Limited, was appointed effective January 24, 2023, following the resignation of the previous auditor due to a disagreement over audit service fees[158]. - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards and reflect a true and fair view of the group's financial position as of December 31, 2023[163]. - The auditor's responsibility is to provide reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error[175]. - The auditor confirmed compliance with ethical requirements regarding independence and communicated any relationships that could affect independence[178].
洢人壹方控股(08305) - 2023 - 年度财报