Financial Performance - The group's total revenue for the year was approximately HKD 361,257,000, representing an increase of about 14.6% compared to the previous year's revenue of approximately HKD 315,136,000[6]. - The gross profit for the year was approximately HKD 31,248,000, with a gross profit margin of about 8.6%, down from a gross profit margin of approximately 10.9% in the previous year[7]. - Administrative expenses for the year were approximately HKD 23,874,000, a decrease of about 4.0% from approximately HKD 24,866,000 in the previous year[8]. - Trade receivables and other receivables increased by approximately 20.6% to about HKD 102,979,000, up from approximately HKD 85,375,000 in the previous year[9]. - As of March 31, 2024, the company's distributable reserves amount to approximately HKD 118,972,000, a slight decrease from HKD 120,334,000 as of March 31, 2023[46]. - The company has not declared or recommended any dividends for the reporting period[40]. Market Outlook - The company anticipates that the demand for housing in Hong Kong will be boosted by government initiatives aimed at attracting talent and investment, despite a weak global economic outlook[5]. - The company has noted a decrease in the number of construction projects due to delays in legislative approvals, leading to increased competition in the construction industry[18]. Corporate Governance - The company has maintained compliance with the minimum public float requirements as stipulated by the listing rules during the reporting period[79]. - The company has established an audit committee with specific written terms of reference, which has held three meetings during the reporting period[145][143]. - The board consists of six directors, including three executive directors and three independent non-executive directors[153]. - The company emphasizes high standards of corporate governance to enhance public accountability and protect shareholder interests[152]. - The board is committed to continuous professional development for directors, providing training on duties and responsibilities as well as updates on relevant laws and regulations[141]. - The independent non-executive directors have confirmed their independence according to the listing rules[140]. - The company has established a nomination committee responsible for identifying suitable candidates for the board and evaluating the independence of non-executive directors[170]. - The company has adopted a shareholder communication policy to ensure timely access to information for shareholders, facilitating their participation in company affairs[183]. - The board has reviewed and discussed the effectiveness of the corporate governance policies during the reporting period[174]. Management and Leadership - The company has a strong management team with extensive experience in project management and engineering, with key members having over 30 years of industry experience[72][73][74]. - Executive Director and CEO Mr. Chan Lit Chuen has over 43 years of experience and is responsible for daily management and execution of business operations[97]. - The company has maintained a strong focus on quality control and compliance with safety and environmental regulations, overseen by Executive Director Ms. Chan Chien Ying, who has over 42 years of experience[101]. - The company has established a solid foundation for future growth through its experienced leadership team and strategic management practices[98]. - The company has a commitment to continuous improvement in project management and operational efficiency, as evidenced by the qualifications of its management team[100]. Risk Management - The audit committee reviewed the financial reporting principles and the effectiveness of the company's risk management and internal control systems, concluding that the audited consolidated financial statements comply with applicable accounting standards and legal requirements[168]. - The audit committee is continuously reviewing significant internal controls and risk management relevant to the group, including the adequacy of resources and training for accounting and financial reporting staff[180]. Operational Focus - The company has been actively involved in the construction sector, focusing on piling engineering and related services, which is a core part of its business operations[95]. - The group operates primarily in foundation engineering services in Hong Kong and Macau, including piling construction and site preparation[114]. - The company has maintained its status as a major player in the construction industry, leveraging its extensive experience and strategic partnerships[98]. Supplier and Customer Concentration - The largest supplier accounted for 70.1% of the group's total procurement, while the top five suppliers together represented 98.9%[58]. - The largest customer contributed 46.2% of the group's total revenue, with the top five customers accounting for 87.8%[58]. Compliance and Legal - The company has not entered into any derivative contracts to hedge against foreign exchange risks, as it operates primarily in Hong Kong dollars[12]. - The company has not reported any significant acquisitions or disposals of subsidiaries or associated companies during the reporting period[86]. - The company has not entered into any contracts that involve the management and operation of any significant part of the business during the reporting period[107]. - The company has not appointed an internal audit function but will review the need for such a function annually, considering the cost-effectiveness of appointing external independent professionals[179]. Remuneration and Incentives - The remuneration policy for directors is based on their experience, responsibilities, workload, and time dedicated to the group, with adjustments made annually[148]. - The company has implemented a bonus scheme to align financial interests with those of employees and retain high-quality staff[148]. - The total remuneration for the auditor for audit services amounted to HKD 480,000[178]. Sustainability and Environmental Commitment - The group is committed to long-term sustainability by minimizing environmental impact through resource conservation and compliance with relevant laws[128]. - The company is committed to adhering to relevant laws and regulations, as part of its environmental policy and performance[110].
上谕集团(01633) - 2024 - 年度财报