Financial Performance - The company's revenue decreased from approximately HKD 1,210.1 million for the year ended March 31, 2023, to approximately HKD 1,151.0 million for the current year, primarily due to a reduction in revenue from RMAA services[8]. - Profit attributable to the company's owners decreased from approximately HKD 56.8 million for the year ended March 31, 2023, to approximately HKD 27.7 million for the current year, mainly due to a decrease in revenue and overall gross margin[8]. - Gross profit decreased from approximately HKD 84.7 million for the year ended March 31, 2023, to approximately HKD 60.1 million for the current year, with the gross margin dropping from about 7.0% to approximately 5.2%[13]. - Total revenue for the year ended March 31, 2024, was HKD 1,150,954,000, a decrease of 4.9% from HKD 1,210,108,000 in the previous year[129]. - Gross profit for the same period was HKD 60,055,000, down 29.2% from HKD 84,658,000 year-on-year[129]. - The net profit for the year was HKD 32,060,000, representing a decline of 43.5% compared to HKD 56,686,000 in the previous year[129]. - Basic earnings per share decreased to HKD 7.45 from HKD 15.26, a drop of 51.1%[129]. - The net profit for the year ended March 31, 2024, was HKD 27,704 thousand, compared to HKD 56,758 thousand for the previous year, indicating a decrease of about 51.2%[137]. - The company reported a pre-tax profit of HKD 37,416 thousand for the year ended March 31, 2024, down from HKD 67,438 thousand in the prior year, representing a decrease of approximately 44.5%[140]. Expenses and Costs - Administrative expenses increased from approximately HKD 23.0 million for the year ended March 31, 2023, to approximately HKD 29.9 million for the current year, primarily due to rising employee costs[15]. - The company's financing costs increased from approximately HKD 14,000 for the year ended March 31, 2023, to approximately HKD 27,000 for the current year, mainly due to increased interest expenses on lease liabilities[21]. - Administrative expenses increased to HKD 29,906,000 from HKD 23,040,000, marking a rise of 29.5%[129]. - The financing costs increased slightly to HKD 27,000 from HKD 14,000, indicating a rise of 92.9%[129]. Financial Position - As of March 31, 2024, the company maintained a solid financial position with bank balances and cash of approximately HKD 125.1 million, down from approximately HKD 187.9 million in the previous year[26]. - The current ratio as of March 31, 2024, was approximately 4.2, compared to about 4.5 in the previous year[26]. - The company's debt-to-equity ratio for the current year is 0.1% (2023: not applicable) calculated based on total debt divided by total equity[27]. - Total assets as of March 31, 2024, were HKD 341,177,000, a slight decrease from HKD 361,882,000 in the previous year[133]. - Total equity decreased to HKD 269,975,000 from HKD 288,135,000, reflecting a decline of 6.3%[133]. - As of March 31, 2024, total equity attributable to owners increased to HKD 265,695 thousand, up from HKD 231,453 thousand as of March 31, 2023, reflecting a growth of approximately 14.8%[137]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the listing rules, ensuring transparency and accountability[64]. - The company is committed to reviewing its corporate governance practices to enhance standards and comply with tightening regulatory requirements[64]. - The company has received annual written confirmations of independence from all independent non-executive directors, affirming their independence as per listing rules[67]. - The company has a strong focus on maintaining good corporate governance practices since its listing, benefiting all shareholders[64]. - The board believes that good corporate governance is essential for effective management and successful business development[64]. - The company has a policy in place to provide independent opinions to the board, ensuring strong independent oversight[68]. - The company has no independent non-executive directors serving for more than nine years, maintaining board independence[68]. - The company continues to review the implementation and effectiveness of its policies annually[68]. - The company is committed to adopting best corporate governance practices and has complied with the corporate governance code throughout the year[69]. - The board of directors is responsible for managing the overall business and ensuring decisions align with the company's interests[70]. Risk Management - The company emphasizes the importance of risk management and identifies significant risks related to reliance on non-recurring revenue and project delays[190]. - The group has adopted a three-tier risk management approach to identify, analyze, assess, mitigate, and respond to risks[151]. - The audit committee reviews the effectiveness of the internal control system, including financial, operational, and compliance monitoring[150]. - The company has implemented a whistleblowing policy to provide clear procedures for reporting misconduct or unethical behavior[155]. - The board believes that hiring external independent consultants for annual audits is more cost-effective than employing an internal audit team[150]. - The company has no internal audit function, and the review is conducted by an external independent consultant[150]. Employee and Workforce - The total employee cost for the year ending March 31, 2024, is approximately HKD 62.0 million, compared to approximately HKD 55.8 million for the previous year[38]. - As of March 31, 2024, the company has 225 employees, down from 282 employees in the previous year[38]. - The company aims to appoint at least one female director by the end of 2024, as currently, there are no female directors on the board[100]. - As of March 31, 2024, 10% of the total workforce, including directors and senior management, are female, while 90% are male[100]. - The company is committed to increasing the representation of women in its workforce and will consider gender diversity in recruitment processes[100]. Dividends and Shareholder Communication - The company declared a special dividend of HKD 0.135 per ordinary share for the year ended March 31, 2024, which was paid on February 6, 2024[24]. - The company has adopted a dividend policy that allows the board to determine the declaration and payment of dividends based on various factors, including financial performance and cash flow[175]. - The company has implemented a shareholder communication policy to ensure effective and timely information dissemination to shareholders[171]. Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position accurately as of March 31, 2024[109]. - The board is required to assess the group's ability to continue as a going concern and disclose relevant matters[117]. - The company has established internal controls to prevent material misstatements in the financial statements due to fraud or error[117]. - The independent auditor has no significant concerns regarding the accuracy of other information presented in the annual report[115]. - The external auditor, Deloitte, reported an audit fee of HKD 1,275,000 for audit services and HKD 23,000 for non-audit services, totaling HKD 1,298,000 for the fiscal year ending March 31, 2024[158].
德益控股(09900) - 2024 - 年度财报