Financial Performance - The company reported revenue of HKD 1,219,143,000 for the year ended December 31, 2022, representing a 10.65% increase from HKD 1,101,791,000 in 2021[6]. - The gross profit decreased by 11.79% to HKD 370,934,000 from HKD 420,530,000 in the previous year[6]. - The company incurred a loss of HKD 29,719,000 in 2022, a significant decline of 216.33% compared to a profit of HKD 25,547,000 in 2021[6]. - The EBITDA for 2022 was HKD 265,182,000, down 20.48% from HKD 333,467,000 in 2021[6]. - The group’s revenue increased from HKD 992,100,000 in fiscal year 2021 to HKD 1,175,390,000 in fiscal year 2022, representing an increase of HKD 183,290,000[33]. - The renewable energy business contributed HKD 454,370,000 to the group's revenue in fiscal year 2022, down from HKD 569,200,000 in fiscal year 2021[34]. - The construction services segment generated revenue of HKD 308,150,000 in fiscal year 2022, an increase from HKD 216,370,000 in fiscal year 2021[34]. - Total revenue for the group in 2022 was HKD 1,175,390,000, compared to HKD 992,100,000 in 2021, marking an increase of 18.46%[104]. - The energy business revenue decreased significantly to HKD 454,370,000 in 2022 from HKD 569,200,000 in 2021, a decline of 20.14%[104]. Assets and Liabilities - The company’s total assets decreased to HKD 3,463,508,000 in 2022 from HKD 3,861,867,000 in 2021[9]. - The asset-liability ratio improved to 45.07% in 2022 from 50.13% in 2021[6]. - The group’s total liabilities decreased to HKD 1,561,090,000 from HKD 1,857,720,000, attributed to debt repayment and contract liabilities being reclassified to related income[97]. - The debt-to-asset ratio was 45.07% as of December 31, 2022, compared to 49.61% in the previous year, indicating improved financial leverage[60]. - The group’s net current assets increased to HKD 319,850,000 as of December 31, 2022, compared to HKD 182,630,000 on December 31, 2021, resulting in a current ratio of 1.31, up from 1.12 a year earlier[63]. Cash Flow and Financing - The company’s net cash and cash equivalents were HKD 184,447,000, down from HKD 291,358,000 in the previous year[6]. - The group’s cash and cash equivalents amounted to HKD 184,450,000, a decrease of HKD 30,140,000 from HKD 214,590,000 on December 31, 2021, primarily due to debt repayment and investments in renewable energy[63]. - The group recorded an increase in expected credit loss provisions for receivables, contributing to the overall net loss in fiscal year 2022[30]. - Financing costs slightly increased by HKD 1,550,000 to HKD 67,540,000, attributed to increased borrowing in China for renewable energy development[40]. - The group has identified liquidity risk, emphasizing the importance of maintaining sufficient cash and cash equivalents to meet financial obligations[163]. Operational Highlights - The company achieved operational revenue of HKD 1,012,000,000 in its water services and environmental renewable energy sectors in 2022[10]. - As of December 2022, the company achieved a total online electricity generation of 672 million kWh, with a total installed capacity of 150.50 MW[11]. - The company signed eight new biogas power generation projects, adding a generation capacity of 18 MW[11]. - The average daily sewage treatment capacity of Jining City Haiyuan Water Co., Ltd. increased by 39% year-on-year in 2022[21]. - The company achieved a water supply of 85,741,400 tons, a year-on-year increase of 6.67%[17]. Strategic Initiatives - The company plans to expand its overseas projects, particularly in biomass and gas power generation, with a focus on the Jakarta project in Indonesia[10]. - The group plans to focus resources on developing environmental protection and new energy sectors, including the establishment of a dedicated production line for glass recycling in Xisha[24]. - The group aims to restart the Jakarta project as a starting point for expanding into overseas markets in 2023[24]. - The company plans to focus on becoming a leading biomass gas operator in China and will optimize its traditional water service sector[23]. - The company is actively expanding its renewable energy portfolio, with projects in regions like Jakarta and Guangxi, indicating a focus on international market expansion[120]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange, except for a deviation noted in section C.2.1[192]. - The board is committed to enhancing transparency and quality of disclosures, aiming to provide effective risk and internal control measures[192]. - The company emphasizes a culture of integrity and ethical conduct, promoting its values throughout all departments[192]. - The management team includes experienced professionals with backgrounds in finance, corporate management, and investment, enhancing the company's operational capabilities[185][186][189][190]. - The board includes members with extensive experience in accounting, tax, and corporate finance, which supports the company's financial strategies[184]. Employee and Talent Management - As of December 31, 2022, the remaining group had a total of 1,010 employees, an increase from 996 employees as of December 31, 2021[173]. - Total employee benefits expenditure for the year amounted to HKD 182,790,000, a decrease from HKD 194,530,000 in the previous fiscal year[173]. - The company encourages employees to participate in continuous education programs, seminars, and online learning to enhance their skills and knowledge[173]. Risks and Challenges - The group faces foreign exchange rate risk due to most assets and loans being denominated in RMB, with management actively monitoring exchange rate fluctuations[161]. - Investment risk is a concern, with the group conducting feasibility assessments and requiring board approval for investment decisions[166]. - The group is expanding into renewable energy and biomass energy, which involves significant capital investment and potential uncertainties[168]. - The group is closely monitoring regulatory changes in China to mitigate legal and compliance risks[168].
中国水业集团(01129) - 2022 - 年度财报