Financial Performance - The company reported a gross profit of HK$383.1 million, an increase of HK$50.7 million from FY22/23[9]. - Revenue decreased by HK$12.9 million, a decline of 1.8% from FY22/23[21]. - For the financial year 2023/24, the Group reported revenue of approximately HK$383.1 million and gross profit of HK$7.0 million, compared to HK$332.4 million and HK$5.2 million in the previous year[25]. - The Group recorded a loss of HK$12.9 million for the financial year 2023/24, an improvement from a loss of HK$15.3 million in the previous year[25]. - Contract revenue increased by approximately HK$50.7 million compared to the previous year, while gross profit rose by approximately HK$1.8 million, resulting in a gross profit margin increase to 1.8%[25]. - Administrative and other operating expenses decreased by approximately HK$1.7 million to HK$20.6 million, primarily due to reduced salaries and foreign exchange losses[25]. - The top five projects contributed revenue of HK$306.8 million in 2023, down from HK$316.2 million in 2022, with the largest project accounting for 22.5% of total revenue[25]. Project Management and Operations - The company continues to focus on "design and build" projects to maintain profit margins and safeguard shareholder interests[8]. - The Group emphasizes design and build projects, which provide flexibility and cost efficiency, successfully implementing alternative designs during the financial year[33]. - The management team applies technical knowledge and quality control to overcome complex issues on construction sites[18]. - The Group's project management team experienced a staff turnover rate of 10% in 2024, up from 5% in 2023[42]. - The Group has a stable and experienced management team, which is crucial for delivering high-quality work[42]. Market Conditions and Industry Outlook - The construction industry is expected to perform better due to the government's commitment to increasing land supply for infrastructure development[8]. - The foundation industry’s future growth is heavily dependent on the prosperity of the property market in Hong Kong[40]. - The construction industry is currently benefiting from strong housing needs and large government infrastructure projects[40]. - The Group anticipates a rebound in the foundation industry in the medium run due to the Hong Kong government's policy to increase land supply and commitment to infrastructure investments[71]. - External factors such as government policy changes and economic setbacks may impact the number of new construction projects available[40]. Environmental and Sustainability Initiatives - The company has started using "B100 Biodiesel" to power generators in new projects, reducing greenhouse gas emissions[18]. - The Group is committed to reducing greenhouse gas emissions, noise, and air pollution from project activities to create sustainable value[95]. - The Group emphasizes environmental protection in its projects, considering environmental requirements of potential customers in tender documents[190]. - The Group was awarded the ISO 14001:2015 environmental management system accreditation, valid from August 8, 2020, to September 3, 2026[190]. Corporate Governance and Board Structure - The board consists of six directors, including three independent non-executive directors, which exceeds the requirement of at least one-third independence[122]. - The independent non-executive directors represent 50% of the board, ensuring sufficient independence to safeguard shareholder interests[122]. - The Company has received annual confirmations of independence from all independent non-executive Directors as per the Listing Rules[85]. - The Company considers all independent non-executive Directors to be independent according to the Listing Rules[85]. - The audit committee is composed exclusively of independent non-executive directors, allowing them direct access to external auditors[146]. Shareholding and Capital Structure - As of March 31, 2024, Mr. Lau Pak Man holds a total of 337,520,000 shares, representing 40.67% of the issued share capital of the Company[90]. - Mr. Cheng Wing Cheong has a total of 275,900,000 shares, accounting for 33.24% of the issued share capital[90]. - The Company has a controlled corporation interest held by Mr. Lau Pak Man amounting to 270,000,000 shares, which is 32.53% of the issued share capital[90]. - The largest supplier accounted for 27.5% of the Group's purchases, while the five largest suppliers combined represented 58.3%[92]. - The largest customer contributed 22.5% to the Group's sales, and the five largest customers combined accounted for 88.5%[92]. Financial Position and Capital Commitments - As of March 31, 2024, the Group's cash and bank balances were HK$78.6 million, down from HK$112.0 million in 2023, with restricted bank balances of HK$43.9 million[185]. - The current ratio decreased to 3.0 as of March 31, 2024, from 3.8 in 2023[185]. - The gearing ratio improved to 5.0% as of March 31, 2024, down from 6.7% in the previous year, primarily due to the repayment of HK$5.2 million in lease liabilities[185]. - The Group's equity stood at HK$261.6 million with debts of HK$13.1 million as of March 31, 2024[185]. - As of March 31, 2024, the Group had no capital commitments, consistent with the previous year[67]. Future Plans and Strategic Direction - The Group plans to expand its capacity to capture more business opportunities and enhance its foundation design and project management capabilities[71]. - The Group aims to provide quality and flexible solutions to customers while maintaining competitiveness in a challenging market[96]. - The Board expresses confidence in the Group's future net profit and operational scale growth, supported by its long-standing reputation, listing platform, and robust financial position[96]. - The Company will regularly review the delegation of authority to ensure it meets the Group's needs[126].
现恒建筑(01500) - 2024 - 年度财报