Financial Performance - The Group recorded total revenue of HK$238.4 million for the year ended 31 March 2024, an increase of approximately 14.4% compared to HK$208.4 million for the previous year[12]. - The Group reported a net loss of approximately HK$55.1 million, a decrease of approximately HK$58.0 million compared to the net profit for the year ended 31 March 2023[12]. - The Group's revenue increased by approximately HK$30,075,000 or 14.4%, from approximately HK$208,350,000 for the year ended 31 March 2023 to approximately HK$238,425,000 for the Year[33]. - The gross profit for the Year was approximately HK$21,250,000, representing a decrease of approximately 15.9% compared to approximately HK$25,263,000 for the year ended 31 March 2023, with a gross profit margin of approximately 8.9%[27][34]. - The Group recorded a consolidated net loss of approximately HK$55,106,000 for the Year, a significant increase from a net profit of approximately HK$2,852,000 for the year ended 31 March 2023[27][44]. - Losses from other income, gains, and losses amounted to approximately HK$13,865,000, an increase of HK$11,609,000 compared to losses of approximately HK$2,256,000 for the previous year[35][39]. - Administrative expenses increased by approximately 12.1% to approximately HK$18,751,000 from approximately HK$16,728,000 for the year ended 31 March 2023[36][40]. - Finance costs rose approximately 945.5% to approximately HK$345,000 compared to approximately HK$33,000 for the year ended 31 March 2023, mainly due to lease liabilities and increased mortgage loan interest[43]. - The Group reported a loss attributable to owners of approximately HK$55,106,000 for the year, an increase of about 2,032.2% compared to a profit of approximately HK$2,852,000 in 2023[48]. Market Conditions - The construction industry in Hong Kong faces intense competition, exerting downward pressure on pricing, margins, and overall profitability[13]. - The economic recovery from COVID-19 in Hong Kong has been limited, with high-interest rates continuing to pressure demand for residential properties[13]. - The removal of certain stamp duty measures and easing of mortgage loan-to-value ratios have had a limited effect on market recovery[13]. Business Operations - As of 31 March 2024, the Group has 13 ongoing projects with an aggregate contract sum of approximately HK$647.7 million and recognized revenue of approximately HK$187.2 million[21]. - The Group is focused on façade works, including design and build services for new buildings and renovation services for existing premises[11]. - The Group's services include developing designs, conducting structural calculations, and managing procurement and installation works[19]. - The Group will remain vigilant in monitoring business operations following the winding up of a major customer, Fung Cheung Kee Group[17]. - The Group's projects are non-recurring, and failure to secure new projects could materially affect sustainability and financial performance[85]. Investment Properties - The Group held a total of seven investment properties as of 31 March 2024, with three already on the market after renovation[26][29]. - The rental segment for investment properties incurred a loss of approximately HK$95,000 during the year, excluding a fair value change of approximately HK$19,145,000[26][29]. - The Group anticipates improvement in the rental segment as more investment properties become available for lease in the future[26][31]. - The Group's investment properties had a carrying amount of approximately HK$97,800,000 as of March 31, 2024, compared to approximately HK$81,700,000 in 2023[52]. Financial Position - As of March 31, 2024, the Group's total cash and bank balances were approximately HK$30,704,000, a decrease of about 51.7% from approximately HK$63,555,000 in 2023[46]. - The Group's interest-bearing bank borrowings amounted to approximately HK$6,701,000 as of March 31, 2024, compared to nil in 2023[46]. - The gearing ratio as of March 31, 2024, was approximately 5.3%, significantly up from approximately 0.2% in 2023[55]. - Capital expenditure for the year included approximately HK$1,946,000 for property, plant, and equipment, and approximately HK$23,945,000 for investment properties, down from approximately HK$3,584,000 and HK$50,124,000 in 2023 respectively[56]. - The Group had capital commitments for property, plant, and equipment amounting to approximately HK$Nil as of March 31, 2024, compared to HK$256,000 in 2023[66]. - Contingent liabilities not provided for in the financial statements included guarantees given to banks for surety bonds of approximately HK$25,147,000, an increase from approximately HK$12,202,000 in 2023[66]. - As of March 31, 2024, the Group had approximately HK$18,288,000 of time deposits pledged for banking facilities, up from approximately HK$10,173,000 in 2023[52]. Human Resources - The Group employed a total of 96 employees as of March 31, 2024, compared to 63 employees as of March 31, 2023, representing a 52.4% increase in workforce[75]. - Total staff costs, including Directors' emoluments, were approximately HK$36,602,000 for the Year, up from approximately HK$30,492,000 in 2023, indicating a 20.3% increase[75]. - The Group's human resource management aims to reward employees with competitive remuneration and career development opportunities[115]. Shareholder Information - The Board resolved not to recommend the declaration of a final dividend to shareholders for the Year[100]. - As of March 31, 2024, there were no distributable reserves available for shareholders, down from approximately HK$62,998,000 in 2023[127]. - The annual general meeting is scheduled for August 23, 2024, with the register of members closed from August 20 to August 23, 2024[104]. - As of March 31, 2024, Mr. Chen Yuet Wa holds 750,000,000 shares, representing 75% of the company's shareholding[150]. - Ornate Bright Limited, wholly owned by Mr. Chen Yuet Wa, is the beneficial owner of the 750,000,000 shares[157]. - Ms. Wong Chun Siu, spouse of Mr. Chen Yuet Wa, is deemed to have an interest in all shares held by him, also totaling 750,000,000 shares or 75%[157]. Corporate Governance - The Group has complied with the Non-Competition Undertaking as confirmed by the Independent Non-executive Directors[162]. - All independent non-executive Directors have confirmed their independence under the Listing Rules[143]. - The Company has arranged appropriate insurance coverage for Directors' and officers' liabilities[163]. - The Company did not purchase, sell, or redeem any of its listed securities during the Year[170]. - There were no significant transactions or contracts involving Directors with material interests during the year[142]. - The Company has adhered to the minimum exemption thresholds for continuing connected transactions as per the Listing Rules[194]. Related Party Transactions - The Group recognized a right-of-use asset and a lease liability of approximately HK$7,206,000 for a lease arrangement with Ms. Wong Chun Siu, spouse of the Controlling Shareholder[181]. - Lease payments to Ms. Wong Chun Siu amounted to HK$1,432,000 in 2024, an increase from HK$1,320,000 in 2023[187]. - A new one-year lease arrangement was established with a related party, which is exempt from reporting and independent shareholders' approval requirements under the Listing Rules[194]. - Significant related party transactions are disclosed in note 37 of the financial statements, with no transactions constituting disclosable non-exempted connected transactions[195]. Share Option Scheme - The Company has a Share Option Scheme valid until December 12, 2029, allowing eligible participants to subscribe for shares, with a maximum of 100,000,000 shares to be issued, representing 10% of the shares in issue as of the date of the annual report[197]. - The total number of shares that may be issued upon exercise of options under the Share Option Scheme in any 12-month period shall not exceed 1% of the shares in issue at the date of grant[198]. - For substantial shareholders or independent non-executive directors, the maximum share award in the Share Option Scheme is limited to 0.1% of the shares in issue, with a maximum aggregate value of HK$5.0 million[200]. - The Share Option Scheme aims to incentivize and retain high-caliber employees and attract valuable human resources to the Group[196].
华和控股(09938) - 2024 - 年度财报