Financial Performance - The group recorded total revenue of approximately HKD 194.0 million for the year ended March 31, 2024, a decrease of about 18.8% compared to HKD 239.0 million for the year ended March 31, 2023[8]. - The revenue decline was primarily due to the economic recession in the construction industry and a strategic focus on clients with a good track record of receivables to improve credit control[12]. - The group's revenue decreased by approximately 18.8% from about HKD 239.0 million for the year ended March 31, 2023, to about HKD 194.0 million for the year ended March 31, 2024, primarily due to the economic downturn in the construction industry[19]. - Direct costs for the year ended March 31, 2024, were approximately HKD 165.4 million, a reduction of about 32.6% from approximately HKD 245.5 million for the year ended March 31, 2023[20]. - The group recorded a gross profit of approximately HKD 28.6 million for the year ended March 31, 2024, compared to a gross loss of approximately HKD 6.6 million for the year ended March 31, 2023, resulting in a gross profit margin of 14.8%[21]. - Other income decreased from approximately HKD 2.9 million for the year ended March 31, 2023, to about HKD 1.4 million for the year ended March 31, 2024, mainly due to the absence of government subsidies received in the previous year[22]. - The group's net profit for the year ended March 31, 2024, was approximately HKD 0.7 million, a significant improvement from a net loss of approximately HKD 30.0 million in the same period of 2023[25]. - As of March 31, 2024, the group's bank balance was approximately HKD 29.9 million, compared to HKD 12.6 million as of March 31, 2023[28]. - The group's total debt as of March 31, 2024, was approximately HKD 63.5 million, down from HKD 102.4 million as of March 31, 2023[28]. - The capital debt ratio as of March 31, 2024, was approximately 82.0%, a decrease from 133.3% as of March 31, 2023[30]. - The total employee cost for the year ended March 31, 2024, was approximately HKD 40.8 million, down from HKD 54.1 million in the previous year[39]. - The board of directors did not recommend any final dividend for the year ended March 31, 2024, consistent with the previous year[40]. Strategic Focus and Management - The board anticipates continued challenges in the industry due to high interest rates, which are expected to slow the private property market in Hong Kong and negatively impact the construction sector[9]. - The company plans to maintain prudent financial management in project selection and cost control while enhancing its financial resources to position itself as a suitable contractor for private projects[13]. - The company has established a project team targeting well-known clients with a substantial number of construction projects, aiming for satisfactory results in the public foundation sector[9]. - The board believes that the company's listing on the Hong Kong Stock Exchange enhances its image in the industry and will contribute to greater value for shareholders and investors[9]. - The company will continue to invest in human resources and information systems to improve operational capabilities and efficiency[13]. - The business faces significant risks, including reliance on a limited number of clients for non-recurring contracts, which could adversely affect operations and financial performance[17]. - The company is focused on enhancing its operational efficiency and expanding its market presence through strategic management and oversight[45]. - The company continues to explore opportunities for market expansion and potential mergers and acquisitions to enhance its competitive position[45]. Corporate Governance and Compliance - The company has complied with relevant laws and regulations without any significant violations during the fiscal year[14]. - The board is responsible for the environmental, social, and governance (ESG) strategy and reporting, ensuring compliance with ESG risk management and internal control systems[15]. - The board emphasized the importance of corporate governance, fully complying with the latest regulations as of March 31, 2024[60]. - The company has adopted an anti-corruption policy since April 2017, reinforcing its commitment to ethical practices[60]. - The board consists of a majority of independent non-executive directors, exceeding the requirement of at least one-third as per listing rules[77]. - All independent non-executive directors have confirmed their independence annually, meeting the standards set out in listing rules[79]. - The company has established a nomination committee chaired by the board chairman, with a majority of independent non-executive directors[67]. - The company provides sufficient resources for all board committees to fulfill their responsibilities and seek independent professional advice when necessary[86]. - The audit committee held three meetings during the fiscal year ending March 31, 2024, to review the company's 2023 annual performance and mid-term results[91]. - The audit committee concluded that the consolidated financial statements for the fiscal year ending March 31, 2024, comply with applicable accounting standards and listing rules[91]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, each with a clear written scope of authority[84]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report reflects the company's performance in sustainability initiatives from April 1, 2023, to March 31, 2024[128]. - The company has identified key environmental, social, and governance issues and performance indicators relevant to its operations[129]. - The board is responsible for overseeing risk management related to environmental, social, and governance matters[130]. - The company engages with stakeholders to gather feedback and improve its ESG performance[132]. - The company has implemented internal strategies to minimize its adverse environmental impact and create sustainable value for stakeholders[130]. - The company has established a dedicated team to manage ESG issues across its business sectors[130]. - The company regularly reviews and adjusts its sustainability policies to meet the evolving needs of stakeholders[130]. - The company ensures that its ESG report is prepared in accordance with the guidelines set by the Hong Kong Stock Exchange[127]. - The company identified 17 key environmental, social, and governance (ESG) issues, with a focus on quality management, customer service, and occupational health and safety[135]. - The company is committed to reducing greenhouse gas emissions through various environmental policies and measures, promoting energy-saving practices in its operations[138]. - The company has established procedures to manage emissions from construction sites, including air pollutants, noise, waste, and wastewater, ensuring compliance with environmental regulations[140]. - The company has implemented a noise management strategy using effective soundproofing equipment and has obtained necessary permits for construction noise[140]. - The company has identified significant climate-related risks, including extreme weather events and regulatory changes, and has developed emergency plans and monitoring systems to address these risks[138]. - The company reported no significant violations of environmental laws and regulations during the reporting period[142]. - The company aims to enhance its ESG performance by adopting policies and guidelines to manage key issues identified by stakeholders[137]. - The company is focused on promoting sustainable practices within its supply chain to reduce overall emissions[138]. - The company has a commitment to community investment and charitable activities as part of its social responsibility initiatives[135]. - The company is actively monitoring changes in environmental laws and regulations to ensure compliance and mitigate potential legal risks[138]. Employee Management and Development - The employee gender ratio for 2024 is approximately 5.5:1, compared to 6.8:1 in 2023[171]. - The total employee turnover rate for 2024 is 161.2%, up from 80.3% in 2023[172]. - The injury rate per 100 employees for 2024 is 2.35, an increase from 0.85 in 2023[179]. - The total number of workplace injuries reported in 2024 is 2, compared to 1 in 2023[179]. - The total number of lost days due to workplace injuries in 2024 is 8,163, significantly higher than 4,443 in 2023[179]. - The company has implemented a comprehensive human resources management policy to support employee functions, including recruitment and training[169]. - The company strictly adheres to local employment laws and regulations, ensuring no child or forced labor is employed[169]. - All employees receive formal onboarding training on their first day to familiarize them with company policies[171]. - The company has established a risk assessment plan to manage health and safety risks in daily operations[175]. - The company encourages employees to participate in professional training programs to maintain high professional standards[179]. - The percentage of employees receiving training in 2024 was 34%, compared to 52% in 2023[180]. - The average training hours for senior management in 2024 was 1.3 hours, while for general employees it was 0.6 hours[182]. - The average training hours for female employees in 2024 was 0.4 hours[182]. - The company has not faced any confirmed complaints regarding the quality of its products and services during the reporting period[189]. Sustainability and Environmental Impact - Nitrogen oxides emissions decreased from 1.935 tons in 2023 to 1.207 tons in 2024, representing a reduction of approximately 37.5%[144]. - Total greenhouse gas emissions dropped from 356.42 tons in 2023 to 246.13 tons in 2024, a decrease of about 30.9%[151]. - Direct emissions (Scope 1) reduced from 211.51 tons in 2023 to 156.48 tons in 2024, a decline of approximately 26%[151]. - Total water consumption decreased from 2,544 cubic meters in 2023 to 1,449 cubic meters in 2024, a reduction of about 43%[160]. - Total energy consumption fell from 1,110,560 kWh in 2023 to 785,203 kWh in 2024, a decrease of approximately 29.3%[161]. - The density of total greenhouse gas emissions per project increased slightly from 23.76 tons in 2023 to 24.61 tons in 2024[151]. - The amount of inert construction and demolition waste increased significantly from 46,148 tons in 2023 to 94,023 tons in 2024, an increase of about 103.5%[153]. - The company aims to maintain greenhouse gas emissions levels based on the density from the fiscal year 2022 over the next five years[151]. - The company has established an environmental management system and received ISO14001 and ISO9001 certifications to support sustainable development[164]. - The company continues to implement measures to reduce, reuse, and recycle construction waste materials[154]. - The total amount of harmless waste increased from 46,208 tons in 2023 to 94,126 tons in 2024, an increase of approximately 103.88%[197]. - The density of total harmless waste per project increased from 3,081 tons in 2023 to 9,413 tons in 2024, an increase of about 205.56%[197]. - The total number of employees decreased from 117 in 2023 to 85 in 2024, a reduction of approximately 27.36%[200].
凌锐控股(00784) - 2024 - 年度财报