Financial Performance - The group's revenue increased from approximately HKD 46.7 million for the year ended March 31, 2023, to approximately HKD 52 million for the year ending March 31, 2024, representing a growth of 11.3%[7]. - The company recorded a profit attributable to owners of approximately HKD 600,000 for the year ending March 31, 2024, compared to a loss of approximately HKD 3.3 million for the year ended March 31, 2023, due to more effective direct cost control measures[7]. - The group's total revenue increased from approximately HKD 46.7 million for the year ended March 31, 2023, to approximately HKD 52.0 million for the year ended March 31, 2024, representing a growth of about 11.3%[41]. - The revenue from green building certification consulting rose by 21.5% from approximately HKD 27.5 million to approximately HKD 33.4 million, attributed to an increase in the number of new contracts awarded[41]. - The revenue from sustainable development and environmental consulting slightly decreased by 9.0% from approximately HKD 11.4 million to approximately HKD 10.4 million, mainly due to intense market competition[42]. - The gross profit increased by approximately 43.7% from about HKD 16.6 million to approximately HKD 23.8 million, primarily due to an increase in gross profit margin and a reduction in subcontracting costs[44]. - The group's administrative expenses rose by approximately 3.9% from about HKD 21.5 million to approximately HKD 22.3 million, mainly due to increased personnel costs and stock-based compensation expenses[48]. - The net cash used in operating activities for the year ended March 31, 2024, was approximately HKD 300,000, a decrease compared to approximately HKD 1.5 million for the year ended March 31, 2023[50]. - As of March 31, 2024, the group's cash and bank balances were approximately HKD 14.2 million, an increase of about HKD 1.3 million from approximately HKD 12.9 million as of March 31, 2023[51]. - The total bank financing amounted to approximately HKD 21.0 million, of which approximately HKD 16.5 million had been utilized[52]. - The company's distributable reserves as of March 31, 2024, are approximately HKD 10,300,000, down from HKD 13,000,000 in 2023[121]. - Capital expenditures for the year ended March 31, 2024, amounted to approximately HKD 800,000 for property, plant, and equipment[125]. Sustainability and ESG Initiatives - The company has enhanced its one-stop ESG online management platform, Sustainature, to simplify ESG data processing and reporting[11]. - The company aims to reduce Scope 1 and Scope 2 greenhouse gas emissions by 42% by 2030, based on 2023 levels, and is committed to achieving net-zero emissions by 2044[11]. - The company received multiple awards recognizing its leadership in climate action and resilience, including the 2022 Hong Kong Environmental Excellence Award[11]. - The company is actively expanding its overseas market presence while enhancing its core business in environmental, social, and governance (ESG) consulting services[11]. - The company has set short-term and long-term targets to limit global temperature rise to within 1.5 degrees Celsius by 2044[11]. - The company continues to integrate core business development with a focus on sustainable development to maintain its industry leadership[11]. - The company has established its Malaysia office, Allied Environmental Consultants Malaysia Sdn Bhd, focusing on sustainable development and employee welfare, achieving WELL Health-Safety Rating certification by March 2024[13]. - The company has expanded its operations in Vietnam to address environmental degradation and promote responsible business practices in collaboration with local partners[13]. - The company became a formal participant in Core Climate, Hong Kong's first international carbon market, allowing it to trade and retire carbon credits[14]. - The company's ESG team has expanded its offerings, including the Sustainature platform to assist businesses in tracking carbon neutrality progress and generating ESG reports compliant with stock exchange requirements[14]. - The company has received multiple awards, including the Bank of China Hong Kong Corporate Low Carbon Environmental Leadership Award, recognizing its contributions to climate action and sustainable development[20]. - The company is actively promoting green finance and innovation in financial products as a member of the Hong Kong Green Finance Association[19]. - The company is focusing on opportunities in the Middle East, leveraging China's Belt and Road Initiative to support local businesses in investing in green infrastructure projects[13]. - The company has partnered with GRESB and CRREM to enhance ESG practices and carbon risk monitoring in the real estate sector in Hong Kong and mainland China[18]. - The company has successfully achieved various international green building certifications, including LEED Platinum and WELL Gold for its projects[16]. - The group aims to enhance its sustainability strategy in response to global sustainable development needs, focusing on creating a healthier and more resilient environment for future generations[23]. - The group is actively seeking to expand its ESG consulting services and green building certification in response to new market opportunities arising from regulatory changes in Hong Kong[28]. - The group is focused on providing comprehensive ESG reporting solutions to listed companies, helping them identify and disclose key performance indicators related to environmental and social impacts[34]. - The group has launched an online ESG management platform, Sustainature, to streamline ESG data processing for various industries[34]. - The group is expanding its service scope to the Asia-Pacific region, particularly Malaysia, to meet broader audience needs and contribute to global net-zero goals[34]. - The group is committed to adhering to the latest climate disclosure regulations set by the Hong Kong Stock Exchange, supporting sustainable green development[23]. Market Expansion and Business Development - The company is actively expanding its overseas market presence, establishing new business connections in the Middle East and opening new offices in Southeast Asia[39]. - The group established new business relationships in the Middle East (Dubai) and opened a new office in Southeast Asia to improve overseas business performance and market share[23]. - The company has revised its IPO proceeds allocation to reflect current expansion strategies, reducing the budget for strategic acquisitions in Hong Kong to HKD 5,800,000[82]. - The company plans to expand its service offerings to include sustainable development and environmental consulting for various property types, including infrastructure projects[76]. - The company aims to strengthen its environmental, social, and governance (ESG) services, with 20% of IPO proceeds (HKD 6,679,000) allocated for this purpose[82]. - The company is facing intense competition with no legal barriers, which may affect its market position and profitability[78]. - The company has submitted proposals for projects to property developers and government entities, indicating a strategic shift towards broader service offerings[77]. - The company is focusing on obtaining green building certification for its team members to enhance competitiveness and increase bidding success rates[77]. - The company has signed a non-binding memorandum of understanding with Standard Chartered Bank (Hong Kong) to promote sustainable finance in the real estate and infrastructure sectors across Asia[64]. - The company aims to explore opportunities to expand its coverage in environmental consulting, solutions, and products[65]. Corporate Governance and Management - The company has established a remuneration committee to review the compensation policies for directors and senior management based on performance and market practices[159]. - The company has complied with all corporate governance codes as per GEM listing rules throughout the reporting period[168]. - The company has received independence confirmations from all independent non-executive directors as required by GEM listing rules[162]. - The company has appointed Zhongzhu Global CPA Limited as the independent auditor for the fiscal years ending March 31, 2024, and March 31, 2023[180]. - The audit committee, consisting of three independent non-executive directors, held four meetings during the year to review financial reports and internal controls[177]. - The company has not entered into any management or administrative contracts related to its business for the year ending March 31, 2024[160]. - There were no significant violations of applicable laws and regulations during the year ending March 31, 2024[158]. - The company has not made any arrangements to allow directors to benefit from acquiring shares or debentures of the company or any other corporation[143]. - No interests or positions in shares or related securities were reported by directors or senior executives outside of those disclosed in the report[148]. - The company has not adopted any other share plans apart from the share option and incentive plans[144]. Employee and Shareholder Information - As of March 31, 2024, the company's employee count increased to 86 from 78 in 2023, reflecting a focus on enhancing workforce productivity and retention through compensation policies[55]. - The debt-to-equity ratio as of March 31, 2024, was approximately 23.4%, a significant increase from 12.3% in 2023, indicating a rise in leverage[56]. - The company has maintained a prudent financial management approach, ensuring a stable liquidity position while continuously assessing clients' credit and financial conditions[58]. - The stock option plan allows for a maximum of 120,000,000 shares, which is 10% of the total issued shares as of the listing date[130]. - The stock option plan has no options that have lapsed, granted, exercised, or canceled as of March 31, 2024[128]. - The stock reward plan allows for a maximum of 60,000,000 shares after adjustments, aimed at retaining talented employees[136]. - The stock reward plan's vesting schedule includes 33.3% vesting on the first and second anniversaries, with the remainder vesting on the third anniversary[133]. - As of March 31, 2024, a total of 14,846,667 restricted shares were granted under the share incentive plan, with 9,023,334 shares remaining after accounting for 5,823,333 shares that vested or lapsed during the year[137]. - The closing price of the shares immediately prior to the grant date was HKD 0.087, and there are no performance targets associated with the awarded shares[139]. - As of March 31, 2024, the beneficial ownership of shares by directors includes 376,300,800 shares, representing approximately 53.64% of the total shares[145]. - Gold Investments Limited, a company registered in the British Virgin Islands, holds 360,850,800 shares, with ownership split between the chairman and CEO[145]. - The company maintained a public float of at least 25% of its issued shares as required by GEM listing rules[156]. - The company made charitable donations of HKD 15,000 for the year ending March 31, 2024, compared to HKD 5,000 for the previous year[175].
沛然环保(08320) - 2024 - 年度财报