Company Operations and Strategy - The company resumed trading on August 4, 2023, after fulfilling all resumption guidelines following the sale of its chaotic operations in China[7]. - The company anticipates that favorable government policies and a rebound in manufacturing activity will alleviate current economic pressures and provide significant business opportunities[7]. - The company aims to improve the working environment and enhance manufacturing capabilities while exploring new construction technologies to seek new profit growth points[7]. - The company is leveraging government policies to expand order volumes due to the Hong Kong government's commitment to increasing public housing supply[7]. - The management team is focused on strategic leadership and professional expertise to drive improvements and maximize shareholder returns[7]. - The company has undergone business reforms to address previous operational challenges and streamline its focus[7]. - The company expresses gratitude to employees, shareholders, customers, suppliers, and business partners for their support over the past year[7]. - The company is committed to seeking new avenues for profitability and growth in the construction sector[7]. - The company has faced significant economic and operational pressures but remains optimistic about future opportunities[7]. Financial Performance - The group's revenue decreased by 15.0% to approximately HKD 157.2 million in the fiscal year 2024, down from HKD 184.9 million in fiscal year 2023[18]. - The net loss attributable to equity shareholders was HKD 4.1 million in fiscal year 2024, compared to a profit of HKD 1.8 million in fiscal year 2023[26]. - Credit loss provisions increased from HKD 2.2 million in fiscal year 2023 to HKD 6.9 million in fiscal year 2024, reflecting market instability[18]. - The gross profit decreased by 19.5% to approximately HKD 18.0 million in fiscal year 2024, with a gross profit margin of 11.5%[21]. - Administrative expenses increased by approximately 6.0% to HKD 23.0 million in fiscal year 2024, primarily due to rising legal and professional fees[24]. - The group recorded other income and losses of approximately HKD 0.6 million in fiscal year 2024, down from HKD 2.4 million in fiscal year 2023[23]. Contracts and Market Demand - The total value of new steel and metal engineering contracts obtained in fiscal year 2024 was HKD 215.0 million[11]. - As of March 31, 2024, the total value of contracts on hand (unfulfilled or partially fulfilled) was HKD 321.7 million[11]. - The group anticipates increased demand for steel and metal products due to government policies favoring the construction industry[14]. - The Hong Kong government plans to build 330,000 public housing units over the next ten years, which is double the number built in the previous decade[13]. Cash Flow and Financial Position - As of March 31, 2024, the total cash and cash equivalents of the group amounted to approximately HKD 63.6 million, a decrease of about 15.8 million from HKD 79.4 million as of March 31, 2023[30]. - The group's net cash outflow from operating activities for the fiscal year 2024 was approximately HKD 1.0 million, while cash outflow from investing activities was about HKD 11.8 million, primarily due to the purchase of properties, plants, and equipment[30]. - The group had no bank borrowings as of March 31, 2024, compared to HKD 3.7 million as of March 31, 2023, following the full repayment of bank loans[31]. - The group's debt-to-equity ratio decreased to approximately 0.25% as of March 31, 2024, down from 2.6% in the previous year, mainly due to the repayment of bank borrowings[30]. - Capital expenditure for the acquisition of properties, plants, and equipment was approximately HKD 12.6 million for the fiscal year 2024, with about HKD 8.5 million funded through net proceeds from the company's shares listed on the stock exchange[38]. Shareholder and Corporate Governance - The board does not recommend the payment of a final dividend for the fiscal year ending March 31, 2024[54]. - The group had no significant acquisitions or disposals of subsidiaries or joint ventures during the fiscal year ending March 31, 2024[40]. - The group has not engaged in any derivative contracts to hedge currency risks and will continue to monitor foreign currency risks[35]. - The group has no major investments that account for 5% or more of total assets as of March 31, 2024[41]. - The company has fully utilized HKD 33.7 million for expanding its workforce in Hong Kong and China, and HKD 5 million for purchasing trucks[58]. - The company continues to apply the net proceeds according to the disclosure in the prospectus regarding future plans and use of proceeds[60]. - The board of directors has confirmed the independence of all independent non-executive directors according to the listing rules[74]. - The board consists of two executive directors and three independent non-executive directors as of March 31, 2024, complying with the listing rules regarding board composition[129]. - The company has established a board independence assessment mechanism to enhance the board's effectiveness and identify areas for improvement[132]. Employee and Workplace Initiatives - The total salary and related costs provided to employees amounted to approximately HKD 66.0 million for the year ending March 31, 2024[84]. - The group employed a total of 302 employees as of March 31, 2024[84]. - The company has established an annual review system to assess employee performance, which influences decisions on salary increases, bonuses, and promotions[84]. - The company encourages a healthy work-life balance by enforcing an internal rule of not exceeding 20 hours of overtime work per month[199]. - The Hong Kong office launched a Happy Workplace Promotion Plan to enhance employee satisfaction and joy at work, receiving recognition as a Happy Enterprise from the Hong Kong Happiness Index Fund[199]. Environmental and Social Responsibility - The company is committed to sustainable development and provides business solutions to address social and environmental challenges, including transitioning to a net-zero economy[173]. - The environmental management system at the main production facility in Huizhou, Guangdong, complies with ISO 14001:2015 standards[182]. - The company has recorded data on four environmental impact areas: air emissions management, noise levels, wastewater discharge, and solid waste[182]. - Total greenhouse gas emissions decreased by 0.65% compared to the previous year, amounting to 804.79 metric tons CO2 equivalent[184]. - The company planted 150 trees to minimize environmental impact during the fiscal year ending March 31, 2024[184]. - The company has implemented ventilation and filtration systems to reduce pollutant accumulation in production facilities[185]. Risk Management and Compliance - The board confirmed that the existing risk management and internal control systems are adequate and effective as of March 31, 2024[160]. - The company has adopted a whistleblowing policy to encourage reporting of suspicious misconduct, ensuring protection for whistleblowers[163]. - There were no related party transactions that required disclosure under the Listing Rules for the year ending March 31, 2024[89].
恒益控股(01894) - 2024 - 年度财报