Financial Performance - Revenue increased from approximately HKD 220.9 million for the year ended March 31, 2023, to approximately HKD 229.9 million for the year ended March 31, 2024, representing a growth of about 4.1%[8]. - Direct costs rose from approximately HKD 207.0 million for the year ended March 31, 2023, to approximately HKD 225.5 million for the year ended March 31, 2024, an increase of about 8.9%[9]. - Gross profit decreased to approximately HKD 4.4 million for the year ended March 31, 2024, down from approximately HKD 13.8 million for the year ended March 31, 2023, a decline of about 68.0%[10]. - Gross margin fell from approximately 6.3% for the year ended March 31, 2023, to approximately 1.9% for the year ended March 31, 2024[10]. - Pre-tax loss for the year ended March 31, 2024, was approximately HKD 9.3 million, primarily due to the decrease in gross profit[14]. - Total comprehensive income changed from a profit of approximately HKD 5.2 million for the year ended March 31, 2023, to a loss of approximately HKD 9.3 million for the year ended March 31, 2024[15]. - Net profit margin decreased from approximately 2.4% for the year ended March 31, 2023, to approximately -4.1% for the year ended March 31, 2024[24]. - The company recorded a loss attributable to shareholders of approximately HKD 9.3 million, a shift from a profit of HKD 5.2 million in the previous year[196]. - The construction and civil engineering sectors faced increased competition, labor shortages, and a reduction in renovation and expansion contracts, negatively impacting performance[196]. Financial Position - As of March 31, 2024, the total cash and cash equivalents amounted to approximately HKD 123.9 million, down from HKD 142.9 million as of March 31, 2023[25]. - The group maintained a debt-to-equity ratio of zero as of March 31, 2024, consistent with the previous year[30]. - Current ratio increased from approximately 3.4 times as of March 31, 2023, to approximately 3.7 times as of March 31, 2024[20]. - Return on total assets decreased from approximately 1.9% for the year ended March 31, 2023, to approximately -3.7% for the year ended March 31, 2024[21]. - Return on equity decreased from approximately 2.7% for the year ended March 31, 2023, to approximately -5.0% for the year ended March 31, 2024[23]. - As of March 31, 2024, the company's distributable reserves amounted to approximately HKD 107.9 million, a decrease from HKD 110.1 million in 2023[79]. Employee and Operational Costs - Total employee costs for the year ended March 31, 2024, were approximately HKD 28.5 million, an increase from HKD 24.5 million for the year ended March 31, 2023[34]. - The group employed 49 full-time employees as of March 31, 2024, unchanged from the previous year[34]. - The group has implemented a comprehensive compensation package, including salaries and bonuses, to attract and retain qualified employees[111]. Governance and Management - The company appointed three independent non-executive directors on December 4, 2023, enhancing its governance structure[42][43][44]. - The management team has extensive experience, with key members having over 30 years in the civil engineering industry and over 15 years in financial accounting and auditing[45][47][49]. - The company has a strong technical oversight with a technical director who has accumulated over 22 years of engineering experience[49]. - The independent directors bring diverse expertise from various sectors, including social services and corporate management, which can contribute to strategic decision-making[43][44]. - The company has established a remuneration committee to review the remuneration policy and structure for all directors and senior management based on performance and market practices[143]. - The audit committee, consisting of three independent non-executive directors, has reviewed and approved the audited consolidated financial statements for the year ended March 31, 2024[147]. - The board consists of one executive director (Dr. Jin Zibo) and three independent non-executive directors[156]. - The company has adhered to the corporate governance code and maintained compliance with the listing rules throughout the year[152]. Customer and Supplier Relationships - The company reported that the largest customer accounted for approximately 38.7% of total revenue for the year ended March 31, 2024, compared to 45.5% for the previous year[66]. - The top five customers collectively represented about 93.5% of total revenue for the year ended March 31, 2024, down from 96.2% in the previous year[66]. - The group’s largest supplier accounted for approximately 23.1% of total procurement, while the top five suppliers represented about 50.5% for the fiscal year ending March 31, 2024, compared to 13.3% and 46.1% in 2023 respectively[104]. - The group has established stable relationships with suppliers and subcontractors to effectively meet customer demands[113]. - The group aims to reduce reliance on major customers by undertaking larger projects with a broader customer base[107]. - The group believes its business model remains sustainable despite customer concentration risks[113]. Corporate Social Responsibility and Compliance - The company has implemented an environmental management system compliant with ISO 14001:2015 standards since November 2003 for civil engineering and September 2012 for contracting, with no significant costs incurred for environmental compliance as of March 31, 2024[114]. - As of March 31, 2024, the company has not experienced any serious violations of applicable laws and regulations that would significantly impact its business and operations[115]. - The group did not make any charitable donations during the year ending March 31, 2024, compared to HKD 28,000 in 2023[80]. Share Capital and Dividends - The company’s issued share capital as of March 31, 2024, was 620,000,000 ordinary shares with a par value of HKD 0.01 each[74]. - The company does not recommend the payment of a final dividend for the year ended March 31, 2024[35]. - The company has established a dividend policy aimed at balancing sufficient capital for business development and rewarding shareholders[185]. - The board will consider various factors, including operational performance and expected financial results, when deciding on dividend payments[186]. Risk Factors - The financial performance and outlook may be significantly affected by risks related to customer concentration and the nature of contracts being non-recurring[66][67]. - The company’s financial results and operational performance are subject to potential adverse impacts from inaccurate cost estimates and project delays[70][71]. - The company’s financial position and operational performance may be adversely affected if it cannot maintain or improve its bidding success rate[68].
荣尊国际控股(01780) - 2024 - 年度财报