Financial Performance - For the fiscal year ending March 31, 2024, the group's revenue was approximately HKD 17.0 million, a decrease from approximately HKD 29.4 million for the fiscal year ending March 31, 2023, primarily due to the completion of maintenance and repair projects[13] - The gross profit for the fiscal year ending March 31, 2024, was approximately HKD 1.1 million, an increase from a gross loss of approximately HKD 5.0 million for the fiscal year ending March 31, 2023, mainly due to a reduction in cost of revenue[13] - The loss attributable to owners of the company for the fiscal year ending March 31, 2024, was approximately HKD 15.1 million, a decrease from a loss of approximately HKD 27.3 million for the fiscal year ending March 31, 2023, primarily due to reduced costs of revenue[13] - The company's revenue for the year ended March 31, 2024, was approximately HKD 17.0 million, a decrease from HKD 29.4 million for the year ended March 31, 2023, primarily due to the completion of maintenance and repair projects[44] - Cost of revenue decreased by approximately 54.0% from HKD 34.4 million for the year ended March 31, 2023, to HKD 15.8 million for the year ended March 31, 2024, mainly due to reductions in employee costs, subcontracting costs, and material costs[45] - Gross profit increased to HKD 1.1 million for the year ended March 31, 2024, compared to a gross loss of HKD 5.0 million for the year ended March 31, 2023, with gross profit margin improving to 6.7% from a gross loss margin of 16.9%[46] - Other income for the year ended March 31, 2024, was approximately HKD 0.2 million, down from HKD 1.3 million for the year ended March 31, 2023, primarily due to the absence of government subsidies under the Employment Support Scheme[47] - The company reported a loss of approximately HKD 15.1 million for the year ended March 31, 2024, a decrease from a loss of HKD 27.3 million for the year ended March 31, 2023, mainly due to reduced revenue[53] Board of Directors and Governance - The board consists of five directors, including two executive directors and three independent non-executive directors[22] - Executive Director Mr. Xia Zhehong has over 19 years of experience in road and highway management and maintenance[23] - Executive Director Mr. Ye Zhucheng has over 26 years of experience in the civil engineering industry[26] - Independent Non-Executive Director Ms. Deng Ruiwen is the chair of the audit committee and a member of the remuneration and nomination committees[28] - Independent Non-Executive Director Dr. Huo Huixin holds multiple degrees, including a PhD in Engineering Management[32] - Independent Non-Executive Director Ms. Wu Jing has over 15 years of experience in corporate finance and investment[31] - The company emphasizes independent judgment on strategy, performance, resources, and code of conduct from its independent directors[28] - The board's composition reflects a balance of experience in engineering, finance, and corporate governance[30] - The company is focused on strategic management and development under the leadership of its executive directors[23][26] - The management team is committed to enhancing operational efficiency and business development[26] - The board of directors consists of a chairman and a CEO, with a total of five members, including three independent non-executive directors[90] - The independent non-executive directors represent at least one-third of the board, ensuring strong independent judgment[96] - The company has adopted a securities trading compliance manual for senior management, aligning with the trading compliance standards[85] - All directors confirmed compliance with the trading compliance standards during the fiscal year ending March 31, 2024[86] - The company has purchased directors' liability insurance to cover legal liabilities arising from actions against directors[92] - The board regularly reviews the contributions of each director and their commitment to their responsibilities[89] - Three directors will retire and seek re-election at the upcoming annual general meeting on July 30, 2024[99] - The company emphasizes high standards of ethics, transparency, accountability, and integrity in its governance practices[82] - The audit committee held three meetings during the fiscal year ending March 31, 2024, to review the annual performance and interim results of the company and its subsidiaries[111] - The remuneration committee conducted two meetings to review the compensation of individual executive directors and senior management for the fiscal year ending March 31, 2024[112] - The nomination committee held one meeting to assess the independence of non-executive directors and the composition of the board for the fiscal year ending March 31, 2024[117] - The company has adopted a board nomination policy for recommending candidates for director positions at the annual general meeting[118] - The audit committee is composed of three independent non-executive directors, ensuring compliance with corporate governance codes[109] - The remuneration committee includes one executive director and three independent non-executive directors, ensuring a balanced approach to compensation[112] - The company emphasizes continuous professional development for all directors, with training sessions attended by all board members during the fiscal year[105] - The board of directors is responsible for overseeing the company's business performance and ensuring alignment with shareholder interests[101] - The company has established three board committees: audit, remuneration, and nomination, each with defined responsibilities[108] - The company regularly reviews and adjusts the remuneration of directors and senior management based on market levels and company performance[113] - The company has adopted a board diversity policy to enhance competitive advantage through diverse board member backgrounds, including gender, age, and professional experience[121] - The board will review its structure and composition annually to ensure a balanced and diverse representation, focusing on various aspects such as gender and cultural background[121] - The company emphasizes gender diversity at all levels, including senior management, and adheres to fair employment principles without discrimination[123] - The board has established a dividend policy to guide decisions on declaring and paying dividends, with no predetermined payout ratio[126] - The board is responsible for assessing and determining the nature and extent of risks the company is willing to take to achieve strategic objectives[127] - The company has implemented multiple risk management procedures and guidelines to ensure compliance with control policies across departments[131] - The board believes that the current risk management and internal control systems are adequate and effective as of March 31, 2024[131] - The company has no internal audit unit due to cost-effectiveness considerations, but it is enhancing its internal control systems[131] - The nomination committee will ensure that proposed candidates enhance board diversity, particularly in gender balance[124] - The company will continue to review its dividend policy and reserves the right to update it at any time[126] Operational Insights - The company will continue to focus on maintenance and civil engineering projects in Hong Kong, despite rising operational costs impacting profit margins[18] - The company remains optimistic about securing future projects and will continue to bid for civil engineering and maintenance projects to create more profits for shareholders[18] - As of March 31, 2024, the company's current assets net value was approximately HKD 10.6 million, down from HKD 22.6 million as of March 31, 2023, with cash and cash equivalents at approximately HKD 0.9 million compared to HKD 5.6 million[54] - The company's current ratio as of March 31, 2024, was approximately 1.6 times, down from 2.2 times as of March 31, 2023[54] - The total lease liabilities as of March 31, 2024, were approximately HKD 0.2 million, down from HKD 0.4 million as of March 31, 2023[54] - Administrative expenses remained stable at approximately HKD 12.5 million for the year ended March 31, 2024, compared to HKD 11.9 million for the year ended March 31, 2023[50] - Financing costs remained stable at approximately HKD 1.0 million for both the years ended March 31, 2023, and March 31, 2024[51] - As of March 31, 2024, the group had capital expenditures of HKD 330,000 for right-of-use assets, down from HKD 474,000 in 2023[60] - The total employee cost for the year ending March 31, 2024, was approximately HKD 10.8 million, a decrease from HKD 17.2 million in 2023[66] - The group completed a placement of 22,800,000 shares at a price of HKD 0.10 per share, raising a net amount of approximately HKD 2.10 million for general working capital[68] - The group has no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures as of March 31, 2024[67] - The group has not proposed a final dividend for the year ending March 31, 2024, consistent with the previous year[73] - The group faced a potential claim of approximately HKD 1.644 million related to construction services, which management believes is unreasonable and unlikely to result in cash outflow[62] - The group has identified a disputed overpayment of approximately HKD 287,000, with a proposed repayment of HKD 137,000 from the supplier[62] - The group has no significant foreign exchange risk as its business activities are primarily conducted in Hong Kong and denominated in HKD[74] - The group has utilized HKD 6.8 million of the net proceeds from the 2022 placement for expanding the workforce, with a total planned use of HKD 29.6 million[77] - The group has no plans for significant investments or capital assets as of March 31, 2024[67] - The net proceeds from the placement for general working capital amounted to HKD 2,100,000, fully utilized by March 31, 2024[80] - The group reported a pre-tax loss of approximately HKD 15.1 million and an operating cash outflow of about HKD 7.6 million for the year ending March 31, 2024[138] - As of the reporting date, the group had current bank and other borrowings of approximately HKD 0.9 million, trade payables and other payables of about HKD 7.3 million, and amounts due to shareholders of around HKD 8.9 million[138] - The board confirmed that the financial statements were prepared on a going concern basis, believing the group has sufficient resources to continue operations for the foreseeable future[138] - The external auditor's fees for the year ending March 31, 2024, were HKD 750,000 for audit services and zero for non-audit services[141] Environmental, Social, and Governance (ESG) Initiatives - The company has been engaged in civil engineering work in Hong Kong for over 13 years, focusing on road and highway maintenance projects and other infrastructure[161] - The company obtained regular contracts for professional road maintenance and will continue to bid for civil engineering and maintenance projects to increase profitability[161] - The ESG report emphasizes the importance of ESG risk management in decision-making processes to protect business growth and the environment[162] - The company is committed to integrating sustainable development into its operations to create value for stakeholders[162] - The report covers core business operations from April 1, 2023, to March 31, 2024, ensuring data consistency with the previous fiscal year[154] - The company aims to continuously improve its ESG performance and uphold its responsibilities as a responsible enterprise[164] - The report includes quantitative data on environmental and social key performance indicators, ensuring transparency and accuracy[156] - Stakeholder engagement is crucial for the company, as it influences decision-making and helps align ESG strategies with stakeholder expectations[168] - The company adheres to the guidelines set by the Hong Kong Stock Exchange for ESG reporting, ensuring compliance and transparency[155] - The board regularly reviews sustainability policies to ensure alignment with industry best practices and stakeholder needs[164] - The total construction waste generated in 2024 was 5,060.7 tons, a significant increase from 2,901.7 tons in 2023[181] - Greenhouse gas emissions decreased to 71.2 tons of CO2 equivalent in 2024, down from 238.2 tons in 2023, representing a reduction of approximately 70%[186] - The density of greenhouse gas emissions per square meter decreased to 0.05 tons in 2024, compared to 0.09 tons in 2023, indicating a 44% reduction[189] - The company emphasizes the importance of waste management and aims to improve data collection systems for hazardous waste statistics[184] - The company has prioritized addressing occupational safety, waste management, and resource utilization as key ESG issues[177] - The total amount of inert construction waste in 2024 was 5,059.5 tons, compared to 2,686.1 tons in 2023[181] - The company aims to minimize its ecological footprint through responsible resource management strategies[179] - The company has implemented energy-saving measures and adopted renewable energy to reduce greenhouse gas emissions[189] - The total direct greenhouse gas emissions (Scope 1) were 60.6 tons of CO2 equivalent in 2024, down from 212.2 tons in 2023[186] - The company is committed to sustainable practices and responsible operations to address significant environmental issues[179] - Total energy consumption for the fiscal year 2024 was 277.46 MWh, a significant decrease from 859.07 MWh in 2023, representing a reduction of approximately 67.7%[194] - Diesel consumption decreased from 619.53 MWh in 2023 to 184.43 MWh in 2024, a reduction of about 70.2%[194] - Water consumption for fiscal year 2024 was 291.00 cubic meters, down 64% from 810.22 cubic meters in 2023[197] - Total electricity consumption in fiscal year 2024 was 28,731 kWh, a decrease from 60,022 kWh in 2023, representing a reduction of approximately 52.2%[196] - Paper consumption decreased by 36% in fiscal year 2024, with total usage at 256 kg compared to 400 kg in 2023[200] - The energy density per square meter for fiscal year 2024 was 0.21 MWh, down from 0.33 MWh in 2023, indicating improved energy efficiency[194] - The company installed a photovoltaic system in July 2019, generating 2,680 kWh in fiscal year 2024[195] - The total water density per square meter for fiscal year 2024 was 0.216 cubic meters, down from 0.311 cubic meters in 2023[196] - The company is committed to optimizing resource utilization and encouraging suppliers to follow sustainable practices[194] - The company aims to monitor energy consumption continuously and adjust energy-saving policies accordingly[194]
广骏集团控股(08516) - 2024 - 年度财报