Financial Performance - Total revenue for the fiscal year ended March 31, 2023, was approximately HK$190.6 million, a decrease from HK$223.99 million in the previous year, reflecting a decline of 14.9%[26][28]. - The Group reported a net loss of approximately HK$8.1 million for FY2023, an improvement compared to the previous year[41]. - Total revenue for FY2023 was approximately HK$190.6 million, a decrease of about HK$33.4 million or 14.9% from approximately HK$224.0 million in FY2022[49]. - The Group's gross profit increased from approximately HK$2.5 million in FY2022 to approximately HK$12.8 million in FY2023, with the gross profit margin rising from 1.1% to 6.7%[52]. - The Group's revenue decreased by approximately HK$33.4 million or 14.9% from approximately HK$224.0 million in FY2022 to approximately HK$190.6 million in FY2023, primarily due to delayed construction programmes of two key façade projects[68]. - The Group recognized other income, gains, and losses net of approximately HK$1.6 million in FY2023, compared to approximately HK$508,000 in FY2022, mainly from a one-off government subsidy of approximately HK$1.2 million[72]. Project and Contract Management - The Group was awarded 9 new projects with a total contract sum of approximately HK$252.7 million, including 6 façade works and 3 building metal finishing works[24]. - As of March 31, 2023, the outstanding value of projects on hand was approximately HK$440.1 million, up from HK$355.4 million as of March 31, 2022, representing a 23.8% increase[24]. - The total contract value of ongoing projects as of March 31, 2023, was approximately HK$765.9 million[26]. - The Group had 12 ongoing projects with a total original contract sum of approximately HK$765.9 million as of 31 March 2023[44]. - The unfinished value of projects as of 31 March 2023 was approximately HK$440.1 million, up from approximately HK$355.4 million a year earlier[47]. - The Group's projects are awarded on a project-by-project basis through tendering, and failure to secure new projects could adversely affect financial performance[99]. Cost Management and Profitability - The Group's gross profit margin is expected to recover gradually as new projects commence, with ongoing cost control measures to mitigate global economic uncertainties[25]. - The overall profit margin for ongoing projects remains under pressure due to high material prices and logistics costs[27]. - The Group anticipates better cost control and further improvement in gross profit margin in the coming years due to the lifting of COVID-19 restrictions[41]. - Operating and administrative expenses for FY2023 were approximately HK$21.8 million, a decrease of about HK$0.6 million or 2.4% from FY2022[56]. - The Group's financial performance may be adversely affected if there is a lack of continuity in the order book for new projects[99]. Employee and Governance - As of 31 March 2023, the Group had 54 full-time employees, maintaining a stable number of project and administrative staff[64]. - Total employee costs for FY2023 were approximately HK$31.4 million, down from approximately HK$34.7 million in FY2022[87]. - The Group maintained a stable number of full-time employees at 54 as of March 31, 2023, consistent with the previous year[110]. - The Group's Board Diversity Policy emphasizes the importance of diversity in maintaining a competitive advantage[135]. - The Group's corporate governance practices comply with the CG Code, with ongoing reviews to enhance policies and ensure compliance with statutory standards[176]. Safety and Compliance - The Group maintained a good safety management standard with no material findings of non-compliance during safety audits conducted by an independent auditor[135]. - The Group conducts regular internal safety inspections to ensure operations minimize risks to personnel and properties[135]. - A safety management system has been developed to manage records of non-compliance with safety procedures and remedial measures[135]. - The Group has implemented a COVID-19 policy with preventive measures, including rapid antigen testing for employees before entering project sites[138]. - The Group has established a mechanism for employees to report malpractices confidentially, ensuring protection for whistleblowers[166]. Environmental Management - The Group has not incurred any material costs on environmental compliance during the year, while implementing measures to mitigate environmental impacts[189]. - The Group has implemented measures to mitigate environmental impacts related to air pollution, noise, and waste disposal, without incurring significant costs for environmental compliance during the year[192]. - The Group's environmental management policy ensures compliance with environmental laws and regulations, involving employees and subcontractors in managing environmental matters[192]. Quality Control - The quality management system is implemented at various stages of projects, from procurement to installation, ensuring quality standards are met[155]. - Regular inspections and quality checks are conducted at suppliers' factories to ensure the quality of materials supplied[155]. - The company imposes strict quality control standards and monitors subcontractors' workmanship closely during the installation phase[155]. - Various tests, including building materials and design performance tests, are conducted to ensure projects meet required quality standards[155]. Financial Position and Capital Structure - As of March 31, 2023, the Group had net current assets of approximately HK$110.6 million, down from approximately HK$118.0 million as of March 31, 2022, with a current ratio of approximately 3.5 times[80]. - The Group's bank balances and cash increased to approximately HK$56.3 million as of March 31, 2023, compared to approximately HK$46.1 million as of March 31, 2022[80]. - The maximum limit of banking facilities available to the Group was approximately HK$115.0 million, with approximately HK$46.6 million utilized for bank borrowings and performance guarantees[80]. - The gearing ratio increased to approximately 23.5% as of March 31, 2023, up from approximately 16.1% as of March 31, 2022, primarily due to increased bank borrowings and a decrease in total equity[80]. - The Group's capital structure consists of equity attributable to the owners, with no changes reported throughout the year[103].
智中国际(06063) - 2023 - 年度财报