Financial Performance - For the fiscal year ending March 31, 2024, the group generated revenue of approximately HKD 59.6 million from its foundation and other construction engineering business, a slight decrease from HKD 60.7 million in 2023[11]. - The group recorded revenue of approximately HKD 38.0 million from its internet services segment, including O2O business and supply chain management, down from HKD 40.7 million in 2023[11]. - For the fiscal year ending March 31, 2024, the group's revenue was approximately HKD 97.6 million, a slight decrease of about HKD 3.8 million or 3.8% compared to HKD 101.4 million for the fiscal year ending March 31, 2023[22]. - The group's sales cost decreased from approximately HKD 86.5 million for the fiscal year ending March 31, 2023, to approximately HKD 76.6 million for the fiscal year ending March 31, 2024, a reduction of about HKD 10.0 million or 11.5%[23]. - The group recorded a gross profit of approximately HKD 21.0 million for the fiscal year ending March 31, 2024, compared to approximately HKD 14.9 million for the fiscal year ending March 31, 2023, resulting in a gross profit margin of approximately 21.5%[24]. - Other income and gains increased significantly from approximately HKD 2.0 million for the fiscal year ending March 31, 2023, to approximately HKD 17.2 million for the fiscal year ending March 31, 2024, primarily due to the recognition of gains from the sale of certain subsidiaries[25]. - Administrative expenses rose from approximately HKD 26.0 million for the fiscal year ending March 31, 2023, to approximately HKD 32.2 million for the fiscal year ending March 31, 2024, an increase of about HKD 6.2 million or 23.8%[26]. - The net loss attributable to owners for the fiscal year ending March 31, 2024, was approximately HKD 7.5 million, a decrease from approximately HKD 19.0 million for the fiscal year ending March 31, 2023[29]. - As of March 31, 2024, the current ratio was approximately 0.33, down from approximately 0.74 as of March 31, 2023[31]. - Total debt as of March 31, 2024, was approximately HKD 38.7 million, a decrease from approximately HKD 63.1 million as of March 31, 2023[35]. - The debt-to-equity ratio improved from -174.2% for the fiscal year ending March 31, 2023, to -120.3% for the fiscal year ending March 31, 2024[37]. Business Strategy and Opportunities - The group is exploring suitable business opportunities to diversify its operations, particularly in the rapidly growing Chinese e-commerce market[12]. - The board believes that the construction industry market conditions will improve despite current challenges, and the group is prepared to compete effectively[12]. - The establishment of Hainan Hongbao Linked Technology Co., Ltd. aims to enhance the group's supply chain management services and expand into the O2O business[11]. - The group is actively seeking investment opportunities to diversify its business and enhance returns for shareholders[12]. - The construction industry in Hong Kong faces challenges such as increased competition, labor shortages, and rising operational costs[12]. - The company does not plan any significant investments or capital asset projects as of March 31, 2024[55]. Shareholder and Capital Management - The company's issued share capital increased from 800,000,000 shares to 866,400,000 shares after completing the subscription of new shares A on January 16, 2023[39]. - Following the completion of the subscription of new shares B on March 13, 2023, the total issued share capital rose to 866,400,000 shares[40]. - The net proceeds from the subscription of new shares A amounted to approximately HKD 19.8 million, intended for general working capital[41]. - The net proceeds from the subscription of new shares B were approximately HKD 27.9 million, also designated for general working capital, including debt repayment[44]. - The company confirmed a gain of approximately HKD 17 million from the sale of its subsidiaries during the fiscal year ending March 31, 2024[53]. - The company will hold its annual general meeting on September 16, 2024, where Mr. Cheng, Dr. Zhang, and Ms. Huang will retire from their director positions but are eligible for re-election[114]. - The company will continuously review its dividend policy, considering factors such as financial performance, shareholder equity, and operational funding needs[150]. - The company did not recommend any final dividend for the year ended March 31, 2024, consistent with the previous year[185]. Employee and Governance - As of March 31, 2024, the total employee compensation, including directors' remuneration, was approximately HKD 27.8 million, an increase from HKD 18.4 million in 2023[58]. - The company employed a total of 76 employees as of March 31, 2024, compared to 74 employees in 2023[58]. - The company views employees as valuable assets and has made efforts to attract and retain suitable staff for the fiscal year ending March 31, 2024[71]. - The board believes that the company maintains good relationships with employees and has not faced any significant labor disputes or difficulties in hiring experienced staff[71]. - The company has established training programs to enhance the ethical and integrity standards required for all employees[1]. - The company emphasizes a culture of commitment to employee development, workplace safety, and sustainability, which is crucial for attracting and retaining top talent[100]. Corporate Governance - The company has maintained compliance with the corporate governance code as per GEM listing rules, with a noted exception regarding risk management and internal controls[90]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring compliance with GEM listing rules[102]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, to oversee specific areas of the company's affairs[120]. - The Audit Committee held four meetings during the year ending March 31, 2024, to review the company's annual, interim, and quarterly performance, as well as internal control procedures and risk management systems[121]. - The Remuneration Committee held two meetings during the year ending March 31, 2024, to review the remuneration of directors and senior management[125]. - The Nomination Committee held three meetings during the fiscal year ending March 31, 2024, to review and recommend the re-election of directors[128]. - The company has adopted a code of conduct for directors' securities transactions, confirming compliance with the stipulated trading standards[101]. - The independent non-executive directors play a significant role in providing impartial opinions on the company's strategy and performance, ensuring the interests of all shareholders are considered[108]. - The company has established a nomination committee chaired by an independent non-executive director, ensuring a majority of independent members[95]. - The board has established a healthy corporate culture essential for achieving sustainable development, aligning with the company's vision and values[98]. Risk Management - The board is responsible for the effectiveness of risk management and internal control systems, which are designed to manage risks rather than eliminate them[154]. - The group has established risk management procedures to monitor and mitigate operational risks effectively[156]. - The audit committee conducted an annual review of the risk management and internal control systems, reporting that they are effective and sufficient, with compliance to the corporate governance code except for the internal audit function[162]. - The group appointed external professionals for independent review and assessment of the risk management and internal control systems, which were deemed effective and sufficient by the board[159]. - The company has adopted a whistleblowing policy since 2015, which allows employees and stakeholders to report serious misconduct without fear of retaliation, with no significant fraud or misconduct incidents reported for the year ending March 31, 2024[163]. - The company has implemented an anti-bribery and anti-corruption policy to uphold the highest standards of integrity and ethical behavior in business operations[166]. Customer and Supplier Relations - Approximately 91.7% of the group's contract assets and trade receivables as of March 31, 2024, were concentrated among five major customers, compared to 99.5% in the previous year[38]. - The company's top five customers accounted for approximately 72.8% of total revenue for the year ended March 31, 2024, compared to 58.9% in 2023, with the largest customer contributing about 31.8% of total revenue[67]. - The company subcontracted approximately 26.7% of total sales costs for the year ended March 31, 2024, down from 45.8% in 2023, with the largest subcontractor accounting for about 15.2% of total sales costs[70]. - The company's five largest suppliers accounted for no more than 30% of total sales costs for the years ended March 31, 2024, and 2023[69]. - The largest supplier contributed approximately 9.3% to the total cost of sales during the year ending March 31, 2024[200]. - The top five suppliers accounted for about 17.0% of the total cost of sales[200]. - The largest subcontractor represented approximately 15.2% of the total cost of sales for the year ending March 31, 2024[200]. - The top five subcontractors collectively contributed about 24.4% to the total cost of sales[200]. - No directors or significant shareholders have any beneficial interest in the top five customers, suppliers, or subcontractors known to the board[200].
中国红包(08316) - 2024 - 年度财报