Financial Performance - Shenghui Cleanness Group Holdings Limited recorded total revenue of approximately RMB 630.2 million for the year ended December 31, 2023, representing an increase of approximately 6.1% compared to RMB 594.2 million for FY2022[11]. - Gross profit for the Reporting Period amounted to approximately RMB 93.4 million, slightly down from approximately RMB 94.4 million for FY2022[11]. - Adjusted net profit after tax, excluding non-recurring listing expenses of approximately RMB 12.0 million, was approximately RMB 39.9 million, compared to approximately RMB 42.248 million for FY2022[12]. - Revenue from property cleaning services accounted for approximately 96.3% of total revenue in FY2023, amounting to RMB606.7 million[31]. - The cost of services increased from approximately RMB499.8 million for FY2022 to approximately RMB536.7 million for FY2023, representing an increase of approximately 7.4%[32]. - Gross profit for FY2023 was approximately RMB93.4 million, with a gross profit margin of approximately 14.8%, compared to approximately 15.9% for FY2022[33]. - Other income rose from approximately RMB 5.1 million in FY2022 to approximately RMB 6.4 million during the Reporting Period, marking an increase of approximately 25.1%[37]. - Selling and marketing expenses increased from approximately RMB 4.0 million in FY2022 to approximately RMB 5.1 million during the Reporting Period, reflecting a rise of approximately 29.2%[38]. - General and administrative expenses grew from approximately RMB 51.1 million in FY2022 to approximately RMB 61.1 million during the Reporting Period, an increase of 19.7%[39]. - Net profit decreased from approximately RMB 34.4 million in FY2022 to approximately RMB 27.9 million during the Reporting Period, with a net profit margin dropping from 5.8% to 4.4%[42]. - As of December 31, 2023, the Group's net assets amounted to approximately RMB 298.8 million, up from RMB 177.0 million on December 31, 2022[49]. - Cash, bank balances, and restricted bank deposits totaled approximately RMB 150.4 million as of December 31, 2023, compared to RMB 56.5 million as of December 31, 2022[50]. - Total employee benefit expenses for the reporting period were RMB351.3 million, an increase from RMB324.1 million in FY2022, with the number of staff rising to 7,086 from 6,347[78][83]. Market Expansion and Strategy - The company plans to expand its presence in both existing and new markets, leveraging its experience in cleaning and maintenance services[15]. - Shenghui Cleanness Group aims to replicate its business model in other regions of the PRC with strong demand for property cleaning services[15]. - The company is exploring opportunities for potential acquisitions and investments in cleaning and maintenance service providers in the Greater Bay Area[15]. - The company aims to participate in tenders for cleaning services for major infrastructures to be completed in the near future[27]. - The public listing on the Hong Kong Stock Exchange is expected to enhance the company's corporate profile and brand awareness, providing a broader shareholder base[26]. Corporate Governance - The company is committed to achieving good corporate governance, focusing on creating long-term sustainable growth for shareholders and delivering long-term value to all stakeholders[133]. - The company complied with the code provisions set out in part 2 of the Corporate Governance Code from the listing date on December 5, 2023, to December 31, 2023, with one exception noted[134]. - The Board is responsible for overall strategic planning, management, operation, and business development of the group, aiming to enhance shareholder value[135]. - The Board meets regularly to monitor business development and financial performance, delegating certain duties to management for operational oversight[136]. - The company has adopted all provisions of the Corporate Governance Code as per the Listing Rules, except for C.2.1, which will be explained further in the report[137]. - The Board comprises two executive Directors and three independent non-executive Directors, ensuring a balance of power and independent oversight[141]. - Independent non-executive Directors have confirmed their independence under Rule 3.13 of the Listing Rules, ensuring compliance with governance standards[145]. - The Company established a Remuneration Committee comprising three Independent Non-Executive Directors (INEDs) to oversee remuneration policies and structures[153]. - The Nomination Committee consists of three INEDs and is responsible for reviewing the Board's structure, size, and composition, as well as assessing the independence of INEDs[160]. - The Company adopted the Model Code for Securities Transactions by Directors, ensuring compliance by all Directors since the Listing Date[152]. Leadership and Management - Mr. Li has over 25 years of management and operational experience in the cleaning service industry, contributing to the group's development since its founding in August 2000[89]. - Mr. Chen has over 23 years of management and operational experience in the cleaning service industry and has been instrumental in the group's growth since its establishment[92]. - The company has a strong leadership team with members who have completed advanced business management courses, including EMBA programs at Sun Yat-sen University[94]. - The leadership team is responsible for strategic planning, management, operations, and business development within the group[88]. - The roles of Chairman and Chief Executive Officer are currently held by the same individual, Mr. Li Chenghua, which the Board believes provides strong and consistent leadership[147]. Financial Management - The company maintains a prudent treasury policy, closely monitoring its liquidity to meet funding requirements[68]. - The majority of the company's financial assets and liabilities are denominated in RMB, with minimal foreign exchange risk exposure[69]. - The company confirmed its responsibility for overseeing the preparation of consolidated financial statements to ensure they reflect a true and fair view of the group's financial position[195]. - The auditor's fees for the reporting period included approximately HKD 1,350,000 for annual audit fees, HKD 650,000 for other assurance services, and HKD 50,000 for non-audit services[196]. Community Engagement - The company has a commitment to community service, as evidenced by Ms. Chong receiving The Medal of Honour from the Hong Kong government in 2014[102].
升辉清洁(02521) - 2023 - 年度财报