Financial Performance - The Group's total revenue for the year ended March 31, 2024, was approximately HK$945.9 million, representing a 20.3% increase from HK$786.2 million in the previous year[13]. - Gross profit for the Group increased to HK$39.5 million, up 63.2% from HK$24.2 million in the prior year[13]. - The overall revenue for the Group reached approximately HK$945.9 million, an increase of 20.3% compared to HK$786.2 million in the previous year[39]. - Gross profit increased by approximately HK$15.3 million or approximately 63.2% from approximately HK$24.2 million to approximately HK$39.5 million, with a gross profit margin of approximately 4.2% compared to 3.1% in the Last Year[42]. - Net profit decreased to approximately HK$4.2 million from approximately HK$7.9 million, resulting in a net profit margin of approximately 0.4% compared to 1.0% in the Last Year[53]. Construction Industry Overview - The total nominal value of construction projects completed by major contractors in Hong Kong reached HK$271 billion in 2023, an increase of 8.8% compared to 2022[12]. - In the piling and foundation industry, the nominal value for 2023 was approximately HK$21,468 million, significantly up from HK$14,477 million in 2022[12]. - The actual total value of construction projects in 2023 showed a significant growth of 9.9% compared to 2022 after adjusting for price changes[26]. - As of December 2023, there were 845 public construction sites in Hong Kong, indicating a year-on-year increase of 9.0%[26]. - The Development Bureau anticipates approximately 3,370 hectares of land will be available for development in the next decade, presenting favorable prospects for the foundation industry[34]. Challenges and Risks - The construction industry faces challenges such as rising labor costs and material price volatility, alongside a shortage of labor supply due to demographic changes[18]. - The Group's business is significantly influenced by the property market in Hong Kong, with potential adverse effects on project availability if there is a slowdown in market transactions and prices[74]. - The Group faces compliance risks related to various laws and regulations, which may increase operational costs and affect financial performance if new requirements are imposed[76]. - The Group's revenue is derived from non-recurrent projects, and there is no guarantee of securing new contracts, which may lead to significant fluctuations in business volume[85]. Strategic Initiatives - The Group is strategically expanding into new markets and sectors, exploring opportunities in nearby regions and deepening cooperation with other corporations[20]. - The Group plans to diversify its income sources by venturing into trading construction materials and new energy sectors[36]. - The Group aims to achieve greater accomplishments to reward shareholders while navigating both opportunities and challenges in the market[21]. Environmental Management - The Group has established an environmental management system compliant with ISO 14001:2015 standards to minimize environmental impact from construction activities[93]. - As of 31 March 2024, the Group has 139 machines regulated under the NRMM Regulation, with 38 machines exempted and 101 machines approved by the Hong Kong Environmental Protection Department[94]. - The Group plans to acquire new, more environmentally friendly machines and equipment that can obtain approval under the NRMM Regulation[96]. Human Resources - The Group maintains a competitive remuneration package to attract and retain skilled employees in the local construction industry[99]. - As of 31 March 2024, the Group employed a total of 338 full-time employees, an increase from 304 employees as of 31 March 2023[136]. - The total staff cost incurred by the Group for the Review Year was approximately HK$140.0 million, compared to approximately HK$157.8 million in the previous year, reflecting a decrease of about 11.5%[136]. Corporate Governance - The Group is committed to maintaining good corporate governance to safeguard shareholder interests and maximize shareholder value[190]. - The Company has adopted the corporate governance code contained in Appendix C1 to the Listing Rules[191]. - The Board is chaired by Mr. Yip and comprises five members, including two executive Directors and three independent non-executive Directors[197]. - All Directors have confirmed compliance with the Model Code for Securities Transactions during the reporting period[196]. - The Group recognizes the importance of good corporate governance in achieving effective accountability[190].
龙昇集团控股(06829) - 2024 - 年度财报