Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately HKD 77.2 million, a decrease of 40.8% compared to HKD 130.4 million for the year ended December 31, 2022[11]. - Gross profit for the same period was approximately HKD 23.9 million, down 23.9% from HKD 31.4 million in 2022[11]. - The company recorded a pre-tax loss of approximately HKD 38.5 million, which is a decrease of 27.5% compared to a loss of HKD 30.2 million in 2022[12]. - The company recorded a loss of approximately HKD 40.4 million for the year ended December 31, 2023, compared to a loss of HKD 32.3 million in 2022[22]. - Revenue from Hong Kong projects decreased by approximately HKD 50.0 million or 54.8% due to several large projects entering completion stages[57]. - Revenue from Macau decreased by approximately HKD 0.3 million or 76.1%, attributed to fewer bidding activities amid economic weakness[58]. - The company recorded a net loss attributable to shareholders of approximately HKD 40.4 million for the year ended December 31, 2023, compared to a loss of approximately HKD 32.3 million in 2022[27]. Assets and Liabilities - Net assets as of December 31, 2023, were approximately HKD 35.2 million, down from HKD 58.2 million in 2022[12]. - Contract assets as of December 31, 2023, were approximately HKD 110.5 million, a decrease of 24.0% compared to the previous year[12]. - Trade receivables and retention money amounted to approximately HKD 14.1 million, a decrease of 38.1% from the previous year[12]. - As of December 31, 2023, total bank borrowings amounted to approximately HKD 33.2 million, a decrease from HKD 36.6 million in 2022[15]. - The company's current ratio as of December 31, 2023, was approximately 1.47, down from 1.88 in 2022[74]. - The company's net current assets were approximately HKD 60.9 million, a decrease from HKD 113.2 million in 2022, primarily due to a reduction in contract assets[77]. Market and Business Strategy - The company has actively participated in various tender activities in response to the recovery of the construction market in Hong Kong[7]. - The company has entered the Chinese construction market by the end of 2023, aligning with the government's initiatives to stimulate economic activity[8]. - The company aims to expand its market presence in mainland China for marble and granite products, which is expected to significantly increase future revenue and profitability[25]. - The company is focused on maintaining a competitive pricing strategy while ensuring sufficient profit margins in its bids[23]. - The company has taken measures to diversify and expand its business coverage through significant acquisitions and related transactions completed on November 24, 2023[24]. Financial Management and Liquidity - The company is seeking various funding sources to reduce overdue bank borrowings and financial pressure[8]. - The company has taken measures to alleviate liquidity pressure and improve its financial situation, including discussions with banks to extend repayment dates[37]. - The company estimates its liquid assets to be approximately HKD 190.2 million against current liabilities of HKD 128.6 million as of December 31, 2023[33]. - The company has received unsecured loans from its executive directors totaling HKD 26.48 million as of December 31, 2023, with potential additional financing of approximately HKD 10 million[37]. - The company is actively seeking other financing sources, including debt or equity financing, to improve its capital structure and reduce overall financial expenses[37]. Governance and Compliance - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are held by the same individual[171]. - The board of directors consists of 3 executive directors, 1 non-executive director, and 4 independent non-executive directors, ensuring a balanced skill set and diverse perspectives[180]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with the relevant regulations[173]. - The company is committed to continuously reviewing and improving its governance practices in response to developments[174]. - The independent non-executive directors have met without the presence of other executive directors at least once in the year[197]. Environmental, Social, and Governance (ESG) Initiatives - The group has established a robust governance framework for environmental, social, and governance (ESG) matters, with the board taking ultimate responsibility[95]. - The group has implemented internal data systems and review procedures to ensure the accuracy and reliability of the data presented in the ESG report[93]. - The company has identified 19 key environmental, social, and governance (ESG) issues, with six being prioritized as most important, including "prevention of child and forced labor" and "occupational health and safety"[107]. - The company has implemented a comprehensive supply chain management approach to enhance sustainability and requires suppliers to adhere to a code of conduct[120]. - The company is committed to educating employees and stakeholders on the importance of environmental awareness and sustainable practices[139]. Employee Management and Development - The group has a total of 17 employees, with a turnover rate of 417.65%, primarily due to workforce restructuring in response to operational conditions[126]. - 17.65% of employees participated in training during the reporting period, with an average training duration of 15.29 hours per employee[133]. - The group conducts annual performance evaluations to provide promotion opportunities for outstanding employees, ensuring competitive compensation adjustments[123]. - The group emphasizes the importance of equal employment opportunities, prohibiting any form of discrimination based on various factors including age, gender, and nationality[125]. - The company is committed to supporting the Hong Kong SAR government's goal of achieving carbon neutrality by 2050[152].
基石控股(01592) - 2023 - 年度财报