Financial Performance - For the fiscal year 2024, the group recorded revenue of approximately HKD 107.8 million, an increase of about 9.8% from approximately HKD 98.2 million in the fiscal year 2023[7]. - The group reported a net loss of approximately HKD 0.6 million for the fiscal year 2024, a decline from a net profit of approximately HKD 2.4 million in the fiscal year 2023[7]. - Revenue for the fiscal year 2024 increased by approximately 9.8% to about HKD 107.8 million, up from approximately HKD 98.2 million in fiscal year 2023, primarily due to increased rental income from new tower cranes and related services[19]. - Cost of sales and services for fiscal year 2024 was approximately HKD 83.9 million, an increase of about 15.5% from approximately HKD 72.7 million in fiscal year 2023, driven by higher sales inventory and employee costs[20]. - Gross profit decreased by approximately 6.5% to about HKD 23.9 million in fiscal year 2024, with a gross margin of approximately 22.2%, down from 26.0% in fiscal year 2023, mainly due to inventory write-downs[21]. - Administrative expenses rose to approximately HKD 24.6 million in fiscal year 2024 from HKD 21.8 million in fiscal year 2023, primarily due to increased employee costs and director remuneration[23]. - Financing costs decreased by approximately 12.0% to about HKD 1.5 million in fiscal year 2024, down from HKD 1.7 million in fiscal year 2023, due to reduced outstanding bank loan balances[24]. - The group recorded a loss of approximately HKD 0.6 million in fiscal year 2024, compared to a profit of approximately HKD 2.4 million in fiscal year 2023, primarily due to increased employee costs and reduced gross profit[25]. - Capital expenditures for fiscal year 2024 were approximately HKD 32.8 million, with about 87.3% allocated to the purchase of additional tower cranes[26]. - As of March 31, 2024, the group had cash and cash equivalents of approximately HKD 13.3 million, down from HKD 14.2 million as of March 31, 2023[27]. - The debt-to-equity ratio as of March 31, 2024, was approximately 23.3%, a decrease from 26.5% as of March 31, 2023, mainly due to reduced bank loan balances[27]. Employee Costs and Management - The increase in employee costs, including director remuneration, contributed to the net loss, with an increase of approximately HKD 3.1 million noted[7]. - Employee costs for the fiscal year 2024 were approximately HKD 29.2 million, up from about HKD 26.1 million in fiscal year 2023, including performance bonuses of approximately HKD 6.6 million[39]. - The group employed 35 full-time employees as of March 31, 2024, compared to 32 in the previous fiscal year[39]. - The company conducts regular employee evaluations to assess performance and ensure competitive compensation[39]. - The company’s management aims to reward and recognize performing employees through competitive compensation and effective assessment systems[75]. Business Strategy and Market Position - The group aims to capture potential growth in the Hong Kong construction market despite a challenging business environment, focusing on long-term profitability and shareholder value[8]. - The group plans to explore other potential investment opportunities to diversify its business and create new revenue streams[9]. - The group is expanding its business by purchasing more tower cranes, anticipating continued strong demand driven by the increasing public housing application volume in Hong Kong[13]. - The group is committed to seeking other business opportunities in the Hong Kong construction industry to create sustainable returns for shareholders[16]. - The group aims to strengthen its market position in the hoisting industry and diversify its revenue sources[42]. Corporate Governance - The board consists of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors[46]. - The company has adopted a share option scheme to reward participants for their contributions to the group[39]. - The board of directors includes members who are eligible and willing to stand for re-election at the upcoming annual general meeting[89]. - The independent non-executive directors have emphasized the importance of corporate governance and risk management in the upcoming fiscal year[54]. - The company has confirmed the independence of all independent non-executive directors as per GEM listing rules[89]. - The company has adopted and complied with all applicable corporate governance code provisions, except for a deviation noted in the annual report[145]. Risk Management - The company has established a risk management and internal control system to identify, assess, and manage significant risks, with regular evaluations conducted at least annually[192]. - The board believes that the risk management and internal control systems are adequate and effective in managing risks associated with achieving business objectives[193]. - The board will assess the risks associated with the company's strategic goals and ensure the establishment of effective risk management systems[192]. Shareholder Information - The board did not recommend the payment of a final dividend for the fiscal year 2024, consistent with the previous fiscal year[34]. - The company did not declare or propose any dividends for the fiscal year 2024, consistent with the previous fiscal year[70]. - The company has a policy ensuring that all directors are re-elected at least once every three years, with one-third of the directors retiring at each annual general meeting[184]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting to discuss specified matters[200]. Audit and Compliance - The audit committee, composed of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group, ensuring compliance with financial reporting standards[139]. - The independent auditor for the fiscal year ending March 31, 2024, is Tianzhi Hong Kong CPA, who is eligible and willing to be reappointed at the upcoming annual general meeting[140]. - The total remuneration for the independent auditor, Tianzhi Hong Kong CPA, for the fiscal year 2024 amounted to HKD 633,300, which includes HKD 580,000 for audit services and HKD 38,300 for non-audit tax services[187]. Future Outlook - The company has outlined a future outlook with a projected revenue growth of 20% for the next fiscal year[54]. - New product development initiatives are underway, focusing on innovative technologies expected to launch in Q3 2024[54]. - The company is planning market expansion into Southeast Asia, targeting a 10% market share within the next two years[54]. - A strategic acquisition is in progress, aimed at enhancing the company's technological capabilities, with an estimated value of $100 million[54]. - The company has implemented new strategies to improve operational efficiency, aiming for a 5% reduction in costs by the end of the fiscal year[54].
兴铭控股(08425) - 2024 - 年度财报