Financial Performance - The Group's revenue decreased by 17.3% year-on-year to HK$428 million for the year ended 31 March 2024[24]. - The Group's revenue for the year ended March 31, 2024, decreased by 17.3% to HKD 428.1 million from HKD 517.6 million in the previous year[33]. - Gross profit for the same period fell by 24.0% to HKD 25.2 million, down from HKD 33.2 million[33]. - The gross profit margin decreased to 5.9% from 6.4%, representing a decline of 0.5 percentage points[33]. - Loss attributable to owners of the Company was HKD 1.4 million, compared to a profit of HKD 0.8 million in the previous year[38]. - The decrease in revenue was primarily attributed to a decline in the restacking business segment[43]. - For the year ended 31 March 2024, the total revenue was HKD428.1 million, a decrease from HKD517.6 million in the previous year, representing a decline of 17.3%[46][48]. - Revenue from bare shell fit-out projects was HKD375.2 million, contributing 87.7% of total revenue, and increased by 8.5% compared to HKD346.0 million in the previous year[46][48]. - The overall direct margin for the year was HKD60.4 million, a decrease of 9.7% from HKD66.9 million, with a direct margin ratio of 14.1%, up 1.2 percentage points from 12.9%[53][54]. - Other income significantly dropped to HKD5,000, a decrease of 99.7% from HKD1.7 million in the previous year due to the absence of government subsidies[56][63]. - Net profit for the year was HKD0.7 million, a decline from HKD2.6 million in the previous year, with a loss attributable to owners of HKD1.4 million compared to a profit of HKD0.8 million last year[60][61]. Market Conditions - Hong Kong's overall Grade A commercial property vacancy rate was 12.2% in Q1 2024, an increase of 0.7 percentage points from Q4 2023[23]. - The high interest rate environment and unstable geopolitical situation have slowed down corporate expansion, impacting demand for Grade A commercial properties[23]. - The vacancy rate for Grade A commercial buildings in Hong Kong reached 12.2% in Q1 2024, an increase of 0.7 percentage points from Q4 2023[26]. - The Group remains confident in the Grade A commercial property fit-out industry, anticipating a recovery in demand as new commercial properties are completed in the next one to two years[29]. - The Hong Kong Grade A office market is expected to stabilize, driven by competitive rental levels and government measures promoting new industries[94]. Business Strategy - The Group continued to acquire additional projects despite the challenging market conditions, partially offsetting the negative macroeconomic impact[24]. - The Group is focusing on improving its subcontractor portfolio to secure higher profit margins while ensuring construction quality[25]. - The Group is diversifying its business by developing decoration projects outside Grade A commercial buildings, including services for schools and NGOs[25]. - The Group plans to strengthen cost control and improve its sub-contractor portfolio to lay a solid foundation for future profitability[95]. - The Group has a focus on expanding its business operations and enhancing its market presence through strategic initiatives[121]. Financial Position - The current ratio improved to 2.0 times as at 31 March 2024, up from 1.6 times in the previous year, indicating better liquidity[72]. - The gearing ratio increased to 2.9% as at 31 March 2024, compared to 1.4% in the previous year, reflecting a slight increase in financial leverage[72]. - As of March 31, 2024, the group's net current assets amounted to HKD 116.0 million, a slight decrease from HKD 116.8 million as of March 31, 2023[78]. - The group's cash and cash equivalents were HKD 139.6 million as of March 31, 2024, compared to HKD 109.7 million as of March 31, 2023[78]. - The debt-to-equity ratio was 2.9% as of March 31, 2024, compared to 1.4% as of March 31, 2023[78]. Employee and Management Information - The total staff cost for the year ended March 31, 2024, was approximately HKD 49.3 million, slightly down from HKD 49.4 million in the previous year[87]. - The group had a total of 67 employees as of March 31, 2024, down from 75 employees as of March 31, 2023[87]. - The Group focuses on providing competitive remuneration packages to employees to recognize their contributions[137][141]. - Ms. Hui has been an executive director since January 4, 2018, responsible for daily operations and business development[102]. - Mr. Wong has served as the Chairman and CEO since January 4, 2018, overseeing strategic planning and major decisions[105]. - Mr. Cheung has over 20 years of experience in financial management and has been an independent non-executive director since January 21, 2020[109]. - Mr. Siu, appointed on November 9, 2023, has over 15 years of experience in valuation consulting and investment management[116]. - The Group's directors have diverse backgrounds in finance, management, and industry experience, contributing to its strategic direction[121]. Compliance and Governance - The Company is committed to maintaining transparency and compliance with the Securities and Futures Ordinance regarding directors' interests[104]. - The Company has complied with relevant laws and regulations, including the Companies Act and GEM Listing Rules[139][142]. - The Group's consolidated financial statements for the year ended March 31, 2024, have been audited and presented[121]. - The Directors proposed for re-election at the AGM do not have service contracts that are not determinable within one year without compensation[171]. - The interests and short positions of directors and chief executives in the shares and debentures of the company are recorded in compliance with the SFO[185]. Shareholder Information - The principal goal of the Group is to maximize returns to shareholders while ensuring sustainable profit growth[138]. - The Group is committed to a proactive, stable, and sustainable dividend policy, subject to shareholder approval[145]. - The Board does not recommend the payment of a final dividend for the year ended 31 March 2024, consistent with the previous year where no dividend was declared[150]. - As of 31 March 2024, the distributable reserves of the Company amounted to HKD 66.4 million, a decrease from HKD 69.3 million in 2023[154]. - The company adopted a Share Option Scheme on December 8, 2017, aimed at attracting and retaining employees and directors[199].
庄皇集团公司(08501) - 2024 - 年度财报