Financial Performance - The group's profit attributable to shareholders increased by 4.53% to approximately HKD 5.08 million for the reporting period, compared to HKD 4.86 million for the year ended March 31, 2023[7]. - Revenue rose from approximately HKD 287.06 million for the year ended March 31, 2023, to approximately HKD 313.39 million during the reporting period[8]. - Gross profit from core business increased by approximately HKD 1.27 million, driven by revenue growth, although offset by an increase in administrative and operational expenses of approximately HKD 0.61 million and financing costs of approximately HKD 0.65 million[15]. - The gross profit margin slightly decreased from 11.14% for the year ended March 31, 2023, to 10.61% during the reporting period[8]. - The increase in profit is attributed to several factors, including the growth in core business revenue and gross profit, despite rising operational costs[15]. - Revenue increased by approximately HKD 26.33 million or 9.17% to about HKD 313.39 million for the reporting period, driven by growth across all segments, with installation project revenue rising by about HKD 19.76 million or 10.96%[21]. - Cost of revenue rose by approximately HKD 25.06 million or 9.82% to about HKD 280.15 million, influenced by factors such as the Russia-Ukraine war and U.S.-China trade tensions, which disrupted global supply chains[22]. - Gross profit increased by approximately HKD 1.27 million or 3.97% to about HKD 33.24 million, while gross margin slightly decreased from 11.14% to 10.61%[24]. - Administrative and other operating expenses rose by approximately HKD 0.61 million or 2.31% to about HKD 27.03 million, primarily due to increased salaries and benefits for administrative staff[26]. - Financing costs increased to approximately HKD 2.15 million from HKD 1.50 million, attributed to higher bank loan interest due to increased borrowing for operations[27]. - Profit attributable to owners of the company increased by approximately HKD 0.22 million or 4.53% to about HKD 5.08 million, mainly driven by increased gross profit from core business activities[29]. Market Outlook and Strategy - The company anticipates that the Hong Kong market outlook will be driven by large infrastructure projects, including "Lantau Tomorrow" and "Northern Metropolis" initiatives[17]. - The company aims to explore suitable expansion opportunities in the coming years despite facing numerous market uncertainties[11]. - The company plans to adopt a conservative operational strategy and closely monitor project progress while actively pursuing new business opportunities to maintain market competitiveness[10]. Dividend Policy - The board does not recommend the payment of a final dividend for the reporting period, consistent with the previous year[16]. - The company did not recommend the payment of dividends for the year ending March 31, 2024, consistent with the previous year[80]. - The company's distributable reserves as of March 31, 2024, amounted to HKD 14,044,000[84]. - The company has a dividend policy stating that annual dividends will not be less than 30% of the consolidated net profit attributable to shareholders[195]. Corporate Governance - The company has adopted corporate governance practices as detailed in the corporate governance report section of the report[122]. - The company has received annual confirmations regarding the independence of its independent non-executive directors as per GEM listing rules[103]. - The board consists of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced skill set and experience[144]. - The company emphasizes the importance of sound corporate governance for long-term sustainable development[137]. - The board is committed to maintaining good corporate standards and procedures for the best interests of shareholders[137]. - The company has established a compliance manual applicable to directors and employees to ensure adherence to governance standards[142]. - The board reviews and monitors the company's practices to maintain high standards of corporate governance[139]. - The company has a nomination committee that reviews the board diversity policy annually to ensure its effectiveness[148]. - The board has implemented a diversity policy aimed at sustainable and balanced development, considering various factors such as gender, age, and professional experience[147]. - The company has adopted the GEM Listing Rules as the code of conduct for directors' securities trading, ensuring compliance during the reporting period[154]. Risk Management - The company has established a risk management framework to identify, assess, manage, and report risks, including strategic, credit, operational, market, liquidity, legal, and regulatory risks[185]. - The company has established a risk management and internal control system to safeguard assets and ensure compliance with applicable laws and regulations[186]. - The internal audit function provides objective assurance to the board regarding the effectiveness of the risk management and internal control systems[188]. - The board has confirmed that there are no significant concerns affecting the company's financial, operational, compliance monitoring, and risk management functions[188]. - The board is responsible for evaluating the nature and extent of risks acceptable in achieving strategic objectives[185]. Employee Relations and Social Responsibility - The company maintained a strong relationship with its employees, offering competitive compensation packages and conducting annual performance reviews[91]. - The group made charitable and other donations totaling HKD 55,000 during the year, compared to HKD 50,000 in 2023[124]. - The company has implemented an environmental management system compliant with ISO 14001:2004 standards, ensuring adherence to environmental regulations[96]. - There were no recorded violations of applicable environmental regulations during the reporting period[97]. - The company has a policy for handling and disclosing inside information in compliance with relevant regulations[191]. Shareholder Engagement - Shareholders have the opportunity to communicate directly with the board during the annual general meeting[196]. - The company allows shareholders to propose matters for discussion at special general meetings, provided they hold at least 10% of the voting rights[197].
荧德控股(08535) - 2024 - 年度财报