Financial Performance - The company reported revenue of approximately HKD 1,564.2 million for the fiscal year ending March 31, 2024, a decrease of about 31.4% compared to HKD 2,280.2 million in the previous year[8]. - Net profit for the year was approximately HKD 17.3 million, down approximately 43.5% from HKD 30.6 million in the prior year[8]. - Gross profit recorded was approximately HKD 100.8 million, a decline of about 20.3% from HKD 126.4 million year-on-year[8]. - The decrease in revenue and profit was primarily due to the failure to renew several government cleaning contracts, resulting in reduced income from government clients[8]. - The group's revenue for the year ended March 31, 2024, was approximately HKD 1,564.2 million, a decrease of 31.4% compared to HKD 2,280.2 million for the previous year[20]. - The net profit attributable to equity holders for the year ended March 31, 2024, was approximately HKD 17.3 million, a decrease of 43.5% from HKD 30.6 million in the previous year[26]. - The overall gross profit margin increased from approximately 5.5% to 6.4%, despite a gross profit decrease of about HKD 25.6 million or 20.3% to approximately HKD 100.8 million[22]. - The service cost for the year ended March 31, 2024, was approximately HKD 1,463.4 million, accounting for about 93.6% of the group's revenue, a slight decrease from 94.5% in the previous year[21]. Business Development - The company successfully secured major cleaning contracts, including a landmark shopping mall in East Kowloon and a five-star hotel in Kowloon, indicating significant progress in new business[9]. - The company maintained its leading position in waste transportation services at Hong Kong International Airport and secured a five-year waste collection contract with the Tai Po District Government[11]. - The company will continue to focus on strategic acquisitions to develop new businesses and seek new opportunities in the environmental hygiene service sector[13]. - The group successfully secured a five-year waste collection contract from the Tai Po District Government, marking a significant milestone for its subsidiary in the government client market[17]. - The group has made breakthroughs in high-end client sectors, obtaining cleaning contracts from the largest landmark shopping mall in East Kowloon and a five-star hotel in Kowloon[16]. - The group is expanding into the security services sector, establishing its own team and obtaining relevant licenses to diversify its business[19]. - The company aims to enhance service quality to regain trust from clients and society, focusing on optimizing its organizational structure amid reduced business scale[19]. - The company is actively exploring new markets and business opportunities to diversify and strengthen its competitive position[124]. Governance and Leadership - The company has a strong leadership team with diverse backgrounds in finance, management, and academia, enhancing its strategic decision-making capabilities[59]. - The board includes members with extensive experience in various sectors, contributing to the company's growth and operational efficiency[59]. - The company is focused on maintaining high standards of corporate governance through its independent directors and committees[60]. - The company has adopted the corporate governance code as the basis for its governance practices, ensuring compliance with applicable rules[74]. - The board believes that good corporate governance standards are essential for protecting shareholder interests and enhancing corporate value[73]. - The company has confirmed compliance with the standard code for securities trading by all directors for the fiscal year ending March 31, 2024[76]. - The company has a management team with over 25 years of experience in various fields, including finance, mergers, and risk management[70]. - The company has appointed independent non-executive directors to provide independent opinions and enhance governance[68]. - The company has established a mechanism to ensure independent viewpoints are expressed within the board, promoting constructive discussions and thorough consideration of relevant issues[89]. - The board has complied with listing rules by maintaining at least three independent non-executive directors, constituting one-third of the board[91]. - The company emphasizes a strong corporate governance framework, ensuring that all directors have access to necessary information and can seek independent professional advice when needed[89]. Risk Management - The company has identified major risks categorized as strategic, operational, financial, compliance, and environmental, social, and governance risks[124]. - The board is responsible for risk management and internal control systems, ensuring they are effective in achieving the company's strategic objectives[120]. - The company has established a clear organizational structure to minimize the risks of errors and abuse of power[122]. - The company has implemented various internal guidelines to ensure compliance with labor laws, occupational safety, and tax regulations following its listing on the Hong Kong Stock Exchange in October 2019[132]. - The company has adopted a whistleblowing policy to allow employees and stakeholders to report misconduct confidentially, reinforcing its commitment to ethical business practices[135]. - The company has established a zero-tolerance policy towards corruption, ensuring compliance with applicable anti-corruption laws and regulations[135]. Employee and Operational Efficiency - The company employed over 4,700 staff as of March 31, 2024, down from over 7,400 staff as of March 31, 2023[44]. - The group’s administrative expenses decreased by approximately HKD 4.0 million or 4.4% to HKD 87.7 million due to budget cost control measures[24]. - The company regularly reviews employee compensation packages to remain competitive in the labor market, addressing long-term labor shortages[128]. - The company has implemented a series of occupational safety measures to protect employee rights and reduce health risks associated with frontline operations[127]. - Regular training and skill enhancement programs are provided to employees to ensure the company's strategies are reflected in its culture[79]. Shareholder Relations and Financial Management - The company proposed a final dividend of HKD 0.94 per share, totaling HKD 4,700,000, compared to HKD 1.22 per share and HKD 6,100,000 in 2023[157]. - The company has no fixed dividend payout ratio and will review its dividend policy based on financial performance and business conditions[151]. - The company has raised approximately HKD 87.9 million from its global offering, with 34.8% allocated to managing cash flow between salary payments and sales revenue collections[160]. - The company maintains effective communication with shareholders through various channels, emphasizing the importance of investor relations[149]. - The company’s financial performance and operational developments were effectively communicated to shareholders throughout the year[150]. Board Composition and Diversity - The board consists of 12 members, including 1 executive director, 6 non-executive directors, and 5 independent non-executive directors[85]. - The board's gender diversity ratio as of March 31, 2024, was approximately 38.46% female and 61.54% male, meeting the company's diversity target[114]. - The company has adopted a board diversity policy, which will be reviewed annually for effectiveness[112]. - The Nomination Committee will regularly review the board's composition to ensure alignment with the company's strategic needs[116]. - The company emphasizes the importance of independent perspectives in achieving board diversity, which is considered a key competitive advantage[112]. Audit and Compliance - The Audit Committee held three meetings for the year ended March 31, 2024, reviewing financial reporting and operational performance[106]. - The Remuneration Committee held one meeting during the year, focusing on the compensation structure for executive directors and senior management[107]. - The Nomination Committee held one meeting, assessing the board's structure and diversity, and recommending the appointment of a CEO[111]. - The company has provided formal and comprehensive onboarding training for new directors to ensure understanding of business operations and regulatory responsibilities[99]. - Independent non-executive directors have confirmed their independence according to listing rules[183].
庄臣控股(01955) - 2024 - 年度财报