Financial Performance - Revenue for 2021 was HK$332,047,000, an increase of 30% from HK$255,443,000 in 2020[14] - Profit before income tax for 2021 was HK$57,079,000, slightly up from HK$56,720,000 in 2020[14] - The Group's profit after tax for continuing operations was approximately HK$48,297,000, compared to approximately HK$43,083,000 in the previous year[30] - The total comprehensive income attributable to equity holders from continuing operations was approximately HK$48,439,000, compared to approximately HK$42,697,000 in 2020[31] - The gross profit for the year amounted to approximately HK$81,852,000, down from approximately HK$91,033,000 in 2020, with a gross profit ratio of approximately 24.7% compared to 35.6% in the previous year[31] - Cost of revenue rose to approximately HK$250,195,000 in 2021, a 52.2% increase from HK$164,410,000 in 2020, primarily due to higher revenue from the environmental maintenance business[46] Assets and Liabilities - Total assets as of December 31, 2021, were HK$848,607,000, compared to HK$669,099,000 in 2020, reflecting a growth of 27%[14] - Net assets increased to HK$656,201,000 in 2021, up from HK$468,134,000 in 2020, representing a 40% increase[14] - Current liabilities decreased to HK$152,687,000 in 2021 from HK$160,197,000 in 2020, indicating improved financial stability[14] - The Group maintained a strong cash position with total current assets of HK$521,764,000 in 2021[14] - As of December 31, 2021, the Group's cash and cash equivalents were approximately HK$233,608,000, representing an increase of 80.9% compared to approximately HK$129,132,000 as of December 31, 2020[54] Revenue Sources - The environmental maintenance business contributed approximately HK$325,957,000 to the total revenue, reflecting an increase of 28.5% from HK$253,704,000 in the previous year[30] - The property leasing business generated rental income of approximately HK$3,133,000, up from HK$1,665,000 in 2020, reflecting a recovery in office vacancy rates[34] - Revenue from securities trading business rose to HK$2,957,000 in 2021, significantly up from HK$74,000 in 2020, representing an increase of approximately 3,895.9%[45] Expenses and Employee Costs - General and administrative expenses increased to approximately HK$71,434,000 in 2021, up 38.4% from HK$51,601,000 in 2020, aligned with revenue growth and increased share-based payment expenses[47] - Employee benefits expenses totaled approximately HK$191,672,000 in 2021, reflecting a 41.1% increase from HK$135,853,000 in 2020, driven by a rise in labor numbers and minimum salary rates[52] - The number of employees increased to 4,690 as of December 31, 2021, from 4,185 in 2020, indicating a growth of approximately 12.1%[52] Strategic Focus and Future Outlook - The management is optimistic about future growth and market expansion strategies[19] - The company is focused on new product development and technological advancements to enhance its market position[19] - The Group plans to explore business opportunities in high-growth sectors in the PRC, including high technology, software consulting, and internet services[23] - The Group remains optimistic about future business development and intends to execute established business strategies to enhance value and provide returns to shareholders[24] Shareholder Information and Dividends - The Group's reserves available for distribution to shareholders amounted to approximately HK$432,571,000 as of December 31, 2021[112] - The Company does not recommend payment of any dividend for the year ended December 31, 2021[107] - The Directors will review the dividend policy from time to time and may modify it as deemed necessary[109] Corporate Governance and Leadership - The company has a strong leadership team with diverse backgrounds in finance, law, and management, enhancing its strategic decision-making capabilities[93][96][100] - The independent directors bring valuable insights and governance oversight, ensuring accountability and strategic alignment with shareholder interests[96][98] Share Option and Award Schemes - The company adopted a Share Reward Scheme on August 10, 2021, with 22,894,000 ordinary shares acquired at a total cost of HK$33,806,000[64][66] - The company adopted a share option scheme on February 5, 2021, granting options for a total of 29,600,000 ordinary shares at an exercise price of HK$1.21 per share[74] - The purpose of the share option schemes is to recognize contributions from eligible participants and to motivate them for better performance and efficiency for the benefit of the Group[199] Investment and Financial Strategy - The Group adopted a more conservative investment strategy in the securities market, disposing of various higher-risk equity securities[34] - The Board aims to enhance the overall return on capital by effectively utilizing temporary idle funds through treasury management[34] - The increase in cash position was primarily due to net proceeds of approximately HK$149,537,000 from the share placing in April 2021[54] Related Party Transactions and Compliance - The Company confirmed compliance with the disclosure requirements in accordance with Chapter 14A of the Listing Rules regarding related party transactions[152] - The Company did not purchase, redeem, or sell any of its listed securities during the year, except for 22,894,000 ordinary shares acquired by the trustee of the 2021 Share Award Schemes[170]
网誉科技(01483) - 2021 - 年度财报