Financial Performance - Revenue increased from approximately RMB 793.0 million for the year ended March 31, 2021, to approximately RMB 867.0 million for the year ended March 31, 2022, representing a growth of about 9.3%[9] - Gross profit decreased from approximately RMB 273.3 million to approximately RMB 234.1 million, a decline of about 14.3%[10] - Net profit fell from approximately RMB 101.2 million to approximately RMB 47.6 million, a decrease of about 52.9%[10] - Gross margin and net profit margin for the year ended March 31, 2022, were approximately 27.0% and 5.5%, respectively[11] - The company's revenue increased to RMB 867.0 million for the fiscal year ending March 31, 2022, representing a 9.3% increase from RMB 793.0 million for the fiscal year ending March 31, 2021[21] - Overall gross profit decreased by about 14.3% to RMB 234.1 million for the fiscal year ending March 31, 2022, down from RMB 273.3 million for the fiscal year ending March 31, 2021[23] - The company's sales cost increased by approximately 21.8% to RMB 632.9 million for the fiscal year ending March 31, 2022, up from RMB 519.7 million for the fiscal year ending March 31, 2021[22] - Other income increased by approximately RMB 9.4 million or 179.7% to RMB 14.7 million for the fiscal year ending March 31, 2022, compared to RMB 5.2 million for the fiscal year ending March 31, 2021[24] - Research and development expenses slightly increased to approximately RMB 25.4 million for the fiscal year ending March 31, 2022, from about RMB 24.3 million for the fiscal year ending March 31, 2021[25] - General and administrative expenses rose by approximately RMB 41.8 million or 47.8% to RMB 129.2 million for the fiscal year ending March 31, 2022, compared to RMB 87.4 million for the fiscal year ending March 31, 2021[27] - The financing costs increased by approximately RMB 7.1 million or 51.0% to RMB 21.1 million for the fiscal year ending March 31, 2022, from RMB 14.0 million for the fiscal year ending March 31, 2021[29] - For the fiscal year ending March 31, 2022, the company recorded a net profit of approximately RMB 47.6 million, a decrease of about 52.9% compared to RMB 101.2 million for the fiscal year ending March 31, 2021[17] Contracts and Future Outlook - The company has 288 ongoing contracts valued at approximately RMB 569.0 million and 42 expected contracts valued at approximately RMB 102.0 million as of March 31, 2022[11] - The company anticipates completing contracts worth approximately RMB 626.0 million for the year ending March 31, 2023[11] - The company plans to focus on medium to large tower cranes to meet the growing demand for prefabricated construction[12] - The company aims to establish a standardized after-sales service ecosystem for tower cranes to support sustainable development in the industry[12] - The company will continue to enhance its manufacturing and processing capabilities for tower cranes to meet diverse customer needs[12] - The company acknowledges the ongoing global economic uncertainties and will monitor recovery speeds across different economies to capture opportunities and mitigate operational risks[12] Assets and Liabilities - The company's net current assets decreased by RMB 257.0 million to RMB 451.9 million as of March 31, 2022, primarily due to an increase in trade payables[32] - As of March 31, 2022, the company's cash and cash equivalents amounted to RMB 169.9 million, a decrease of RMB 180.5 million compared to the previous year[34] - The company's bank borrowings increased to approximately RMB 642.0 million as of March 31, 2022, up from RMB 482.6 million in the previous year[34] - The current ratio decreased to 1.61 times as of March 31, 2022, down from 2.64 times the previous year, primarily due to an increase in trade payables[34] - The debt-to-equity ratio rose to 44.6% as of March 31, 2022, compared to 35.5% the previous year[34] - Lease liabilities decreased by 12.6% to approximately RMB 58.7 million as of March 31, 2022, from RMB 67.2 million the previous year[37] - The company had capital commitments of RMB 14.3 million for equipment not yet delivered as of March 31, 2022, an increase of RMB 13.9 million from the previous year[39] Employee and Remuneration - Total employee benefit expenses for the year ended March 31, 2022, amounted to RMB 108.0 million, a 33.4% increase from the previous year due to an increase in employee numbers and wages[50] - The company’s remuneration policy is based on employee performance, qualifications, and capabilities, with regular performance assessments conducted[125] - No directors waived any remuneration for the year ending March 31, 2022[125] Dividends and Shareholder Information - The proposed final dividend for the year ended March 31, 2022, is HKD 0.016 per share, totaling approximately HKD 18.67 million, down from HKD 35.01 million the previous year[48] - As of March 31, 2022, the company's distributable reserves amounted to approximately HKD 517.8 million, a decrease from HKD 571.3 million as of March 31, 2021[111] - The company proposed a final dividend of HKD 0.016 per share, totaling approximately HKD 18,669,940, subject to shareholder approval at the 2022 Annual General Meeting[97] - The company has a significant shareholder, Tat Hong China, which owns approximately 67.8% of the issued share capital[148] - As of March 31, 2022, the company’s board members and senior executives hold a total of 790,760,387 ordinary shares, representing about 67.77% of the company[145] Governance and Compliance - The company has complied with applicable laws and regulations without any significant violations during the fiscal year[105] - The company has adopted the corporate governance code under Appendix 14 of the listing rules, ensuring compliance with all applicable code provisions for the year ending March 31, 2022[185] - The company has established an audit committee consisting of three independent non-executive directors to review the consolidated financial statements for the year ending March 31, 2022[180] - The consolidated financial statements for the year ending March 31, 2022, have been audited by PwC, which is willing to be reappointed as the independent auditor at the upcoming annual general meeting[181] - The company has implemented a board diversity policy to enhance business development and improve board performance, considering factors such as gender, age, and professional experience[198] - The company is committed to maintaining high corporate governance standards to ensure the integrity, transparency, and quality of information disclosure[183] - The chairman and CEO positions are held by different individuals to ensure independence and accountability within the company[192] - The audit committee has been established in accordance with the corporate governance code to oversee financial reporting and compliance[180] Related Party Transactions - The company has ongoing related party transactions with Yongmao Group, with a transaction amount of RMB 101.7 million for the purchase of tower cranes and related parts for the year ending March 31, 2022[138] - The company also has a rental agreement with Yongmao Group, with a transaction amount of RMB 107.8 million for the rental of tower cranes and related parts for the same period[138] - As of March 31, 2022, Tat Hong Holdings owns approximately 24.0% of Yongmao, while Sun & Tian Investment Pte. Ltd. holds about 57.4%, making Yongmao a related party under the listing rules[141] - All independent non-executive directors have reviewed the related party transactions and confirmed that they are conducted in the ordinary course of business and on normal commercial terms[141] - The company’s related party transactions are governed by the Hong Kong Listing Rules Chapter 14A, ensuring compliance with disclosure requirements[143] - The auditor confirmed that all related party transactions were approved by the board and complied with relevant agreements[142] Management and Directors - Mr. Sun has over 24 years of experience in the construction machinery manufacturing industry and has been the Chairman and Executive Director of Yongmao since February 2008[68] - Mr. Liu has over 13 years of experience in the tower crane industry, including development, manufacturing, and management[69] - Mr. Guo has over 29 years of experience in the nuclear engineering industry and is currently the General Manager of the Bidding Management Department at China Nuclear Industry[70] - Ms. Pan has over 22 years of experience in auditing and accounting, currently serving as a partner at Taipei Onething CPAs Firm[75] - Mr. Yin has over 25 years of experience in venture capital and private equity investment, previously holding senior positions in various investment firms[78] - Mr. Yin has been an independent director of Nanofilm Technologies International Limited since May 2021, contributing to the company's strategic direction in nanotechnology solutions in Asia[79] - Dr. Huang, appointed as an independent non-executive director in December 2020, has over 30 years of experience in international political economy and business, providing independent advice to the board[80] - Ms. Wang, the Chief Financial Officer, oversees all financial activities, budgeting, and forecasting, with over 16 years of experience in auditing and finance[83] - Mr. Duan, Senior Vice President, has over 14 years of experience in the construction machinery rental industry, managing daily operations of the group and its subsidiaries[84] - Mr. Zhu, Senior Vice President, has over 34 years of experience in the construction industry, responsible for overseeing daily operations at Huaxing Dafeng[87] - Mr. Shen, Chief Engineer, has over 22 years of experience in technical supervision and project management within the construction and property development sectors[88] Corporate Social Responsibility - The group made charitable donations of approximately RMB 240,000 during the year, compared to none in the previous year[166] - The group is committed to environmental sustainability, focusing on energy conservation and recycling initiatives[106]

Financial Performance - Revenue for the six months ended September 30, 2021, was RMB 415,599,000, an increase of 1.3% from RMB 410,539,000 in the same period of 2020[11]. - Gross profit decreased to RMB 119,451,000, down 19.0% from RMB 147,554,000 year-on-year[12]. - Operating profit for the period was RMB 63,154,000, a decline of 31.7% compared to RMB 92,413,000 in the previous year[14]. - Profit before tax was RMB 51,194,000, down 38.4% from RMB 82,893,000 in the same period of 2020[16]. - Net profit for the period was RMB 38,488,000, a decrease of 37.7% from RMB 61,876,000 year-on-year[18]. - Basic and diluted earnings per share decreased to RMB 0.03 from RMB 0.07 year-on-year[23]. - The company reported a profit of RMB 38,488 thousand for the period, compared to RMB 61,876 thousand in the previous period, reflecting a decline of 37.7%[33]. - The company recorded a net profit of approximately RMB 38.5 million for the six months ended September 30, 2021, a decrease of about 37.8% compared to RMB 61.9 million for the same period in 2020[161]. Assets and Liabilities - Total assets as of September 30, 2021, amounted to RMB 2,871,646,000, an increase from RMB 2,481,740,000 as of March 31, 2021[27]. - Non-current assets increased to RMB 1,670,025,000 from RMB 1,340,719,000 in the previous period[27]. - Total liabilities increased to RMB 1,311,072 thousand as of September 30, 2021, up from RMB 930,811 thousand as of March 31, 2021, representing a growth of 40.9%[31]. - Current liabilities rose significantly to RMB 732,081 thousand, compared to RMB 432,131 thousand, marking an increase of 69.5%[31]. - Non-current liabilities totaled RMB 578,991 thousand, an increase from RMB 498,680 thousand, reflecting a growth of 16.1%[31]. - Total equity reached RMB 1,560,574 thousand as of September 30, 2021, up from RMB 1,550,929 thousand, indicating a slight increase of 0.6%[33]. - Total borrowings as of September 30, 2021, were RMB 571,637 thousand, with RMB 124,279 thousand due within one year[69]. - The total financial liabilities as of September 30, 2021, amounted to RMB 1,217,934 thousand, with RMB 697,002 thousand due within one year[69]. Cash Flow - Cash and cash equivalents increased to RMB 209,632,000 from RMB 149,515,000 in the previous period[27]. - Net cash inflow from operating activities was RMB 93,146 thousand, down from RMB 123,862 thousand, a decrease of 24.9%[37]. - The financing activities generated a net cash inflow of RMB 69,674 thousand, compared to RMB 64,729 thousand, an increase of 7.5%[37]. - Cash and cash equivalents at the end of the period were RMB 209,632 thousand, compared to RMB 96,291 thousand at the end of the previous period, showing a growth of 117.5%[37]. Trade Receivables and Credit Risk - Trade receivables rose to RMB 587,921,000, up from RMB 454,428,000 as of March 31, 2021[27]. - As of September 30, 2021, the total trade receivables amounted to RMB 593,652 thousand, with overdue amounts exceeding 180 days totaling RMB 35,529 thousand[60]. - The expected loss rate for trade receivables was 0.97% overall, with the highest rate of 3.82% for amounts overdue for more than 2 years[60]. - The impairment provision for trade receivables as of September 30, 2021, was RMB 5,731 thousand, an increase from RMB 5,695 thousand as of March 31, 2021[63]. - Credit risk related to cash and cash equivalents is managed primarily with reputable banks, with expected credit losses close to zero[54]. - The group applies a simplified approach to measure expected credit losses for trade receivables, using lifetime expected loss provisions[57]. Revenue Sources - Revenue from tower crane services, including operating leases and lifting services, contributed significantly to total revenue, with RMB 192,806,000 from operating leases and RMB 220,460,000 from lifting services for the six months ended September 30, 2021[91]. - Major customers contributing over 10% of total revenue included Customer A, which generated RMB 82,295,000 in revenue for the six months ended September 30, 2021, compared to RMB 65,916,000 in the same period of 2020[82]. Expenses and Costs - The company's cost of sales increased by approximately 12.6% to about RMB 296.1 million for the six months ended September 30, 2021, primarily due to an increase in subcontracting labor costs from RMB 108.2 million to RMB 133.3 million[166]. - Overall gross profit decreased by approximately 19.0% to about RMB 119.5 million, with the gross profit margin declining from approximately 36.0% to 28.8%[167]. - General and administrative expenses rose by approximately 17.6% to about RMB 46.7 million, primarily due to a 10% increase in average employee salaries[172]. - Financing costs increased by approximately 27.8% to about RMB 12.4 million, mainly due to foreign exchange losses from foreign currency borrowings[173]. Shareholder Information - The company declared a dividend of RMB 29,081,000 for the year ended September 30, 2021, compared to RMB 7,646,000 for the previous year, representing an increase of approximately 280%[98]. - A special dividend of HKD 0.03 per share was proposed, totaling approximately HKD 35.0 million, to reward shareholders[193]. - As of September 30, 2021, Mr. Huang holds 758,507,878 ordinary shares, representing 65.0% of the company's total issued share capital[198]. Ownership Structure - Tat Hong China Equipment (China) Pte. Ltd. owns approximately 61.5% of the company's issued share capital, while TH Straits 2015 Pte. Ltd. owns about 3.5%[198]. - The overall ownership structure indicates a strong concentration of control within a small group of individuals and related entities[199]. - The company has a complex ownership structure involving multiple layers of subsidiaries and trusts, impacting governance and decision-making[198]. Employee Information - The total employee cost for the six months ended September 30, 2021, was approximately RMB 49.2 million, an increase of about 39.0% compared to the same period in 2020, driven by an increase in employee numbers and salary increments[188]. - The company employed a total of 1,180 employees as of September 30, 2021[188].

TAT HONG EQUIPMENT SERVICE CO., LTD. 達 豐 設 備 服 務 有 限 公 司* （於開曼群島註冊成立的有限公司） 股份代號 : 02153 年報 2021 * 僅供議別 目 錄 | --- | --- | |----------------------|-------| | | | | 公司資料 | 2 | | 主席報告 | 4 | | 管理層討論及分析 | 5 | | 董事及高級管理層履歷 | 11 | | 董事報告書 | 18 | | 企業管治報告 | 29 | | 獨立核數師報告 | 42 | | 綜合全面收益表 | 47 | | 綜合財務狀況表 | 48 | | 綜合權益變動表 | 50 | | 綜合現金流量表 | 51 | | 綜合財務報表附註 | 52 | | 四年財務概要 | 116 | 公司資料 | --- | --- | |-----------------------------|-------------------------------------------------------| | 董事會 | 法律顧問 | | 執行董事 | 崔曾律師事務所 ...