Financial Performance - Revenue for 2022 was RMB 3,263.6 million, an increase of 6.8% from RMB 3,055.3 million in 2021[14]. - Adjusted gross profit margin improved to 11.1% in 2022 from a loss margin of 13.8% in 2021[14]. - Consolidated net profit for 2022 was RMB 72.1 million, recovering from a net loss of RMB 995.8 million in 2021[14]. - Basic earnings per share for 2022 were RMB 1.16, compared to a loss of RMB 16.04 per share in 2021[14]. - The company proposed no final dividend for 2022, consistent with the previous year[14]. - The decrease in expected credit losses on financial and contract assets and other receivables was a key factor in the profit recovery[22]. - The income tax benefit for 2022 was approximately RMB 36.5 million, down from RMB 54.2 million in 2021[78]. - The net finance costs decreased by approximately RMB 250.3 million or 243.2% in 2022, resulting in net finance costs of about RMB -147.4 million, which accounted for -4.5% of the operating revenue[74]. - The expected credit losses for financial and contract assets decreased significantly by about RMB 855.7 million or 97.3% to approximately RMB 24.0 million, representing 0.7% of operating revenue[57]. Operational Strategy - The management emphasized a focus on sustainable development and continuous improvement as part of their corporate mission[17]. - Future strategies include the development of independent brands and intellectual property, as well as an independent marketing network[17]. - The company aims to enhance service quality and create value for customers as part of its operational philosophy[17]. - The Group's strategy focuses on being product-driven, technology-leading, customer-oriented, and value-creating, aiming to improve contract quality and stabilize operational risks[21]. - The Group plans to maintain a cautious and steady development strategy in 2023, focusing on quality, customer service, cost reduction, and efficiency improvement[26]. - The Group's internal management reforms aim to enhance accountability, quality, efficiency, and cost reduction to support steady business development[21]. Project and Contract Management - The aggregate amount of newly-awarded projects decreased by about RMB 2,220.5 million or 51.0% year-on-year, totaling approximately RMB 2,137.4 million in 2022 compared to RMB 4,357.9 million in 2021[35]. - The remaining contract value of backlog as of December 31, 2022, was approximately RMB 11,120.5 million, a decrease of about RMB 1,533.0 million or 12.1% from RMB 12,653.5 million in 2021, which supports sustainable development for the next 2-3 years[41]. - Domestic projects accounted for RMB 1,494.2 million of newly-awarded projects in 2022, while overseas projects contributed RMB 643.2 million[37]. Human Resources and Leadership - The appointment of Zhao Zhongqiu as CEO on July 4, 2022, marks a significant leadership change within the company[3]. - The company had a total of 2,511 full-time employees as of December 31, 2022, down from 2,769 employees in the previous year due to headcount optimization[121]. - The company has established competitive remuneration policies that align the interests of management, employees, and shareholders, including basic salary, allowances, and performance-based incentives[121]. - The company plans to continue investing in research and development, with HKD 261 million allocated for this purpose as of December 31, 2022[120]. - The company has a strong focus on expanding its sales and marketing network, with HKD 220 million allocated for this initiative[120]. Corporate Governance - The company has adopted and complied with the Corporate Governance Code as its own code to govern its corporate governance practices for the year ended December 31, 2022[163]. - The company has maintained high standards of corporate governance to enhance shareholder value and safeguard shareholder interests[162]. - The board of directors is responsible for leadership and control of the company, overseeing strategic decisions and performance to enhance shareholder value[164]. - The company has established Board committees and delegated various responsibilities to these committees as set out in their respective terms of reference[164]. - The company has complied with all code provisions of the Corporate Governance Code for the year ended December 31, 2022[163]. - The company regularly reviews its corporate governance practices to ensure compliance with the Corporate Governance Code[163]. - The company emphasizes the importance of a quality Board and effective internal controls[162]. Diversity and Inclusion - As of December 31, 2022, the company had 2,121 male employees and 390 female employees, representing approximately 84.5% and 15.5% of the workforce respectively[196]. - The company aims to achieve at least 18.0% of female employees by 2030 and expects a gradual reduction in the number of female employee resignations[198]. - The Board has achieved gender diversity with the appointment of Ms. Yang Qianwen as an independent non-executive Director on April 18, 2023, fulfilling the requirement under Rule 13.92 of the Listing Rules[195]. - The company is committed to improving gender diversity at the Board level and plans to appoint one or two female members within the next two years[195]. - The Board's composition will be reviewed at least annually to ensure adherence to the diversity policy[195].
远大中国(02789) - 2022 - 年度财报