Financial Performance - The group's revenue increased by approximately 32.7% from about HKD 260.5 million in the previous year to approximately HKD 345.6 million, primarily due to increased revenue from large renovation projects [20]. - Gross profit decreased from approximately HKD 21.7 million in the previous year to about HKD 12 million this year, attributed to lower margins on several large renovation projects and cost overruns [20]. - The group recorded a loss attributable to shareholders of approximately HKD 14.5 million, compared to a profit of about HKD 1.2 million in the previous year, mainly due to the decrease in gross profit [20]. - The group's revenue for the fiscal year 2023/24 was approximately HKD 345.6 million, representing an increase of about 32.7% compared to HKD 260.5 million in the previous year [35]. - Revenue from renovation services was approximately HKD 85.8 million, a 3.3% increase from HKD 83 million in the previous year [36]. - The group secured 11 large renovation projects with a total contract value of approximately HKD 480.4 million, contributing about HKD 148.3 million to revenue this year [30]. - The gross profit for the group decreased to approximately HKD 12 million, a decline of about 44.7% from HKD 21.7 million in the previous year, primarily due to lower margins on large renovation projects [39]. - The group recorded a loss attributable to owners of approximately HKD 14,500,000 for the year, compared to a profit of approximately HKD 1,200,000 in the previous year [47]. - As of March 31, 2024, the group had bank balances and cash of approximately HKD 23,300,000, a decrease from HKD 26,300,000 in the previous year, mainly due to net cash used in operating activities of about HKD 27,500,000 [49]. - The group's current ratio improved slightly from approximately 2.3 times as of March 31, 2023, to 2.4 times as of March 31, 2024 [49]. - The capital debt ratio increased significantly from 15.7% as of March 31, 2023, to approximately 70.7% as of March 31, 2024, due to increased interest-bearing borrowings from directors and the ultimate holding company [49]. - The group issued 20,000,000 shares at HKD 0.540 per share, raising net proceeds of approximately HKD 10,644,000, primarily for operational funding [52]. - The labor costs for the group amounted to approximately HKD 39,300,000 for the year, compared to HKD 37,100,000 in the previous year, with a total of 80 employees as of March 31, 2024 [63]. - The group has a total of approximately HKD 10,400,000 in performance guarantees as of March 31, 2024, down from HKD 20,600,000 in the previous year [48]. Business Development and Strategy - The company is exploring opportunities for business diversification, including undertaking mass renovation projects for residential developments, successfully securing several such projects last year [21]. - The demand for high-end private residential renovation services remains strong, and the company will continue to develop in this area [21]. - The group is actively expanding its online and offline market share in Hong Kong and mainland China, as well as in the European and American e-commerce markets [24]. - The group has developed several nano products, including a nano antifouling DIY spray and a nano rust-proof lubricant spray, aimed at enhancing ESG compliance [24]. - The group has obtained an exclusive sales license for a nano photocatalytic antifouling material, which is expected to expand revenue sources in the construction materials market [31]. - The company is focused on developing its Nano-AM application service business segment, indicating a strategic emphasis on technological advancement [68]. - The company has a clear focus on expanding its market presence and enhancing its product offerings through innovation [68][70]. - The company aims to achieve sustainable profit growth while considering the financial health of the business before rewarding shareholders [93]. Governance and Management - The company has a strong leadership team with extensive experience in various sectors, including over 32 years in the renovation industry and over 20 years in artificial intelligence and big data [67][70]. - The board includes independent directors with diverse backgrounds, enhancing governance and oversight capabilities [75][76]. - The company has appointed new executive directors to strengthen its management team, including individuals with significant experience in engineering and technology [70][71]. - The company is actively involved in various committees, ensuring comprehensive oversight in areas such as audit, remuneration, and nominations [75][76]. - The leadership team is committed to business development and operational oversight, which is crucial for future growth [67][68]. - The company has adopted and complied with the corporate governance code as per GEM Listing Rules Appendix C1, ensuring proper governance of business activities and decision-making processes [152]. - The board consists of five executive directors, one non-executive director, and four independent non-executive directors, maintaining a diverse and balanced structure [155]. - The company has committed to providing independent professional advice and resources to directors and committees to assist in fulfilling their duties under the GEM Listing Rules [154]. - The company has established a comprehensive training program for new directors to ensure they understand the business and regulatory responsibilities [172]. - The company has a risk management and internal control procedure overseen by the audit committee, which was established on January 19, 2018 [173]. - The board will review its corporate governance policies and reports annually to ensure compliance with GEM listing rules [195]. Environmental and Social Responsibility - The company received the ISO 14001:2015 certification, recognizing its environmental management system, and will continue to implement ESG initiatives [21]. - The company is committed to environmental sustainability and resource efficiency in its operations [85]. - The group is committed to further developing nano applications in innovative technologies, responding to global environmental trends [24]. Risks and Challenges - The company faces several risks, including reliance on major clients without long-term commitments and potential project delays due to subcontractor performance [97]. - The company has not engaged in any business that competes directly or indirectly with its group during the year [139]. - There are no significant uncertainties regarding events that may question the company's ability to continue as a going concern [199]. Shareholder Information - The major shareholders include Mr. Zheng Zengfu and Ms. Liao Lili, each holding 164,200,000 shares, representing 48.29% of the company [131]. - The total shareholding of Mr. Xu Qitai is 12,800,000 shares, accounting for 3.76% of the company [131]. - The company has maintained a public float of at least 25% of its total issued shares as required by GEM listing rules [141]. - The company will suspend share transfer registration from September 5, 2024, to September 10, 2024, for the annual general meeting [143]. - The current stamp duty rate for share transactions in Hong Kong is 0.1% of the transaction value [144]. - The company is exempt from paying stamp duty on share transfers under current Cayman Islands law [145]. - The company has not entered into any equity-linked agreements that would result in the issuance of shares during the year [102]. - The share option plan aims to attract and retain qualified personnel and provide additional incentives to employees and business partners [126]. - The total number of shares that can be issued under the share option plan is 32,000,000, accounting for 9.4% of the company's issued share capital [126]. - No share options have been granted to eligible participants under the share option plan, and the total number of shares to be issued upon exercise of options cannot exceed 1% of the issued share capital during any 12-month period [126]. - The share option plan is effective for 10 years starting from February 14, 2018, after which no further options will be granted [126]. - As of March 31, 2024, there are no unexercised, granted, cancelled, or expired options under the share option plan [129]. - The company has no arrangements that would allow directors to benefit from acquiring shares or debt securities of the company or any other corporate body [129].
快意智能(08040) - 2024 - 年度财报