Financial Performance - Total revenue for the year ended March 31, 2024, was approximately HKD 84.6 million, a decrease of 65.4% compared to HKD 244.3 million in the fiscal year 2023[4] - The construction business contributed approximately HKD 81.1 million in revenue, down from HKD 240.5 million in the previous year[4] - The financing business generated revenue of approximately HKD 3.5 million, slightly down from HKD 3.8 million in the previous year[4] - The company recorded contract revenue of HKD 81,107,000 related to construction and engineering services for the year ended March 31, 2024[184] Cash and Assets - As of March 31, 2024, cash and bank balances were approximately HKD 4.4 million, a significant decrease from HKD 20.7 million in the previous year[17] - Net asset value as of March 31, 2024, was approximately HKD 192.9 million, down from HKD 282.5 million in the previous year[17] - There were no reserves available for distribution to equity holders as of March 31, 2024[47] - As of March 31, 2024, the company's trade receivables and contract assets amounted to approximately HKD 128,721,000 and HKD 32,428,000, respectively, with impairment losses of about HKD 47,804,000 and HKD 5,173,000 deducted[185] Debt and Liabilities - The capital-to-debt ratio remained stable at approximately 0.05, with total bank borrowings of about HKD 12 million compared to HKD 13.7 million in the previous year[17] - As of March 31, 2024, the group had no significant liabilities[62] - The loan portfolio consists of 3 secured loans and 5 unsecured loans, totaling 8 loans[103] - The group has reduced the total amount of mortgaged properties to HKD 8.5 million from HKD 10.8 million in the previous year[9] Shareholder Information - The major shareholders include Hsu Chuan with 450,000,000 shares, representing 22.73% of the issued share capital, and Kado Asset Investment Limited with 400,000,000 shares, representing 20.20%[58] - The company does not recommend the payment of any dividends for the years ended March 31, 2024, and 2023[5] Governance and Compliance - The company has confirmed the independence of all non-executive directors as per the annual confirmation received[50] - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange rules throughout the fiscal year ending March 31, 2024[76] - The company has confirmed that it has maintained sufficient public float as required by the listing rules[86] - The company secretary has been appointed since 2017 and is knowledgeable about the group's affairs, ensuring compliance with all listing rule requirements[129] Internal Controls and Risk Management - The company has implemented internal control policies to manage credit risk, considering factors such as the borrower's credit history and asset quality[125] - The credit control team conducts thorough assessments of applicants, including background checks and income verification[126] - The credit committee is responsible for monitoring the effectiveness of the internal control system and ensuring compliance with regulations[120] Board and Committees - The board of directors consists of three executive directors and three independent non-executive directors, ensuring independent judgment in decision-making[95] - The company held five board meetings during the year, with all directors participating in ongoing professional development[99] - The audit committee held two meetings during the year, with all members present at both meetings[116] - The company has established a remuneration committee to attract and retain talented individuals by shaping and executing compensation strategies[142] Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2024[157] - The audit committee has recommended the reappointment of the external auditor for the upcoming annual general meeting[161] - The external auditor provided both audit and non-audit services, with total fees disclosed in the annual report[120] Future Outlook and Strategy - The group continues to engage in discussions for potential projects in Macau and Hong Kong despite challenging market conditions and high-interest rates[14] - The group aims to maintain its market position in Macau and Hong Kong while exploring projects with good potential[15] - The company believes it has sufficient resources to continue operating for the foreseeable future, preparing financial statements on a going concern basis[113]
志道国际(01220) - 2024 - 年度财报