Financial Performance - The group recorded total revenue of approximately HKD 241.0 million for the year ended March 31, 2021, a decrease of about 46.8% compared to HKD 452.6 million for the year ended March 31, 2020[24]. - The group reported a net loss of approximately HKD 0.6 million for the year ended March 31, 2021, compared to a net profit of approximately HKD 0.3 million for the previous year[24]. - The decline in revenue was primarily due to the economic recession caused by the COVID-19 pandemic, which led to project delays and suspensions in new construction projects[24]. - The company's revenue decreased by approximately 46.8% from about HKD 452.6 million for the year ended March 31, 2020, to about HKD 241.0 million for the year ended March 31, 2021, primarily due to the economic downturn caused by COVID-19[35]. - Direct costs for the year ended March 31, 2021, were approximately HKD 222.0 million, a reduction of about 47.7% compared to approximately HKD 424.8 million for the year ended March 31, 2020, aligning with the decrease in revenue[36]. - Gross profit for the year ended March 31, 2021, was approximately HKD 19.0 million, compared to about HKD 27.8 million for the year ended March 31, 2020, with a gross margin of approximately 7.9%, an increase of about 1.7 percentage points from 6.2%[37]. - Other income increased from approximately HKD 0.8 million for the year ended March 31, 2020, to about HKD 9.1 million for the year ended March 31, 2021, mainly due to government subsidies related to COVID-19 totaling approximately HKD 4.8 million[38]. - Administrative expenses decreased by approximately 2.7% to about HKD 24.6 million for the year ended March 31, 2021, from approximately HKD 25.3 million for the year ended March 31, 2020[39]. Business Strategy and Future Outlook - The board anticipates that the public foundation sector will present potential business opportunities in the next fiscal year despite current competitive challenges[25]. - The company has established a project team targeting well-known clients with a substantial number of construction projects, aiming for satisfactory performance in the foundation business[25]. - The board believes that the company's listing on the Hong Kong Stock Exchange enhances its influence in the relevant industry sector[25]. - The company plans to adhere to prudent financial management in project selection and cost control moving forward[28]. - The group will continue to obtain additional qualifications and enhance its financial resources to position itself as a suitable bidder for private sector projects[28]. - The company intends to invest in human resources and information systems to improve operational capabilities and efficiency[28]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange's listing rules, ensuring compliance and transparency in operations[78]. - The board of directors includes a majority of independent non-executive directors, exceeding the minimum requirement, which supports effective governance[85]. - The company has implemented a risk management system to monitor financial performance and internal controls, ensuring accountability and long-term value creation for shareholders[80]. - The company has a comprehensive insurance policy for its directors and senior management to cover potential legal liabilities arising from their duties[81]. - The daily operations and management of the business have been delegated to executive directors and senior management, who report regularly to the board[82]. - The company has a commitment to maintaining high standards of corporate governance, which is essential for building trust with stakeholders[78]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, each with clear written terms of reference[91]. - The Remuneration Committee held one meeting during the year to review the remuneration of directors and senior management, finding it fair and reasonable[96]. - The Audit Committee held three meetings to review the company's annual results, interim results, and audit plans, ensuring compliance with applicable accounting standards and disclosure requirements[99]. - The Nomination Committee has reviewed and recommended the re-election of directors, considering factors such as diversity in gender, age, and industry experience[97][98]. - The company has provided ongoing professional development for all directors to ensure they remain informed and capable of contributing effectively[90]. - The chairman and CEO roles are separated to avoid power concentration, with Mr. Li serving as chairman and Mr. Chen as CEO during the year[89]. - The company has complied with the requirement that the Audit Committee includes at least one member with appropriate professional qualifications or accounting expertise[99]. - The company continues to enhance its corporate governance practices, including training and updates on regulatory developments for directors[93]. - The company held board meetings with full attendance from executive directors, achieving a participation rate of 100% for the fiscal year ending March 31, 2021[103]. Environmental, Social, and Governance (ESG) Initiatives - The company has identified key environmental, social, and governance (ESG) issues relevant to its operations and has set key performance indicators for these areas[139]. - The ESG report is prepared in accordance with the guidelines set by the Hong Kong Stock Exchange, reflecting the company's performance in environmental management and social responsibility[137]. - The reporting period for the ESG report covers from April 1, 2020, to March 31, 2021[138]. - The company has established a dedicated team to manage environmental, social, and governance (ESG) matters across its business sectors, ensuring effective implementation of sustainability strategies[140]. - The company reported nitrogen oxide emissions of 1.53 tons in 2021, a slight decrease from 1.55 tons in 2020, while sulfur oxide emissions dropped from 0.0016 tons to 0.0009 tons[153]. - The company aims to maintain low emission levels and will continue to monitor its emissions closely[153]. - The company has implemented various environmental policies and measures to mitigate climate change risks, focusing on reducing operational emissions and enhancing business resilience[147]. - The company has not been aware of any significant violations of environmental laws and regulations during the reporting period[152]. - The company engages with stakeholders regularly to gather feedback and improve its ESG performance, ensuring transparency and accountability[143]. - The company has adopted proactive guidelines and action plans to address ESG issues, regularly reviewing and adjusting its sustainability policies[140]. - The company emphasizes the importance of stakeholder participation in assessing significant environmental and social issues[143]. - The company has established procedures to address any non-compliance situations, including immediate notification and investigation of incidents[151]. - The company is committed to reducing its operational impact on the environment through effective management of emissions and waste[148]. - Greenhouse gas emissions in 2021 totaled 236.00 tons, a slight decrease from 240.24 tons in 2020, with a notable reduction in direct emissions from 191.74 tons to 156.08 tons[161]. - The total water consumption decreased significantly from 31,649 cubic meters in 2020 to 13,045 cubic meters in 2021, resulting in a reduction in water density from 2,877 to 625 cubic meters per project[170]. - Total energy consumption decreased from 824,500 kWh in 2020 to 765,609 kWh in 2021, attributed to a reduction in overall vehicle usage[172]. - The company implemented a comprehensive data collection system to monitor and control greenhouse gas emissions, ensuring optimal vehicle efficiency[157]. - The density of total greenhouse gas emissions per project decreased from 21.84 tons in 2020 to 11.80 tons in 2021, due to the completion of several large projects[161]. - The company aims to reduce construction and demolition waste through measures of reduction, reuse, and recycling, with inert construction waste significantly reduced from 24,544 tons in 2020 to 14,747 tons in 2021[163]. - The company has established an environmental management system and obtained ISO14001 and ISO9001 certifications to support sustainable development[173]. - The total consumption of non-renewable fuels decreased from 768,064 kWh in 2020 to 624,867 kWh in 2021[171]. - The company encourages the use of public transportation and carpooling among employees to enhance vehicle efficiency and reduce emissions[154]. - The company has committed to proper management of non-hazardous solid waste, with designated areas for temporary storage of construction waste[167]. Employee and Labor Relations - The employee gender ratio in 2021 was approximately 23.3:1 (male to female), compared to 18.5:1 in 2020[180]. - The total number of employees as of March 31, 2021, was 146, with 140 males and 6 females[180]. - The percentage of new hires in 2021 was 25% for males and 5.4% for females, compared to 54% for males in 2020[180]. - Employee turnover in 2021 was 32% for males and 100% for females aged 30 to 50, with a total turnover of 47 employees[182]. - The company reported zero fatal accidents during the reporting period, maintaining a low injury rate[188]. - The company implemented health and safety measures in response to COVID-19, including daily temperature checks and health declarations[184]. - The company has established a comprehensive occupational health and safety management system based on OHSAS18001[183]. - There were no significant violations of health and safety regulations reported during the period[189]. - The company has a low injury rate of 0 per 100 employees in 2021, compared to 1.3 in 2020[190]. - The company maintains a harmonious labor relationship and ensures compliance with employment regulations[178]. - The company emphasizes the importance of skilled and professionally trained employees for business growth and future success[191]. - In 2021, 52% of employees received training, an increase from 50% in 2020[192]. - The average training hours for male senior management was 8.0 hours, while general employees received an average of 1.6 hours[192]. - The average training hours for female general employees was 0.8 hours in 2021[192]. - The company provides comprehensive training opportunities to support talent development and business growth[191]. - The company has implemented strict recruitment measures to prevent illegal child labor and ensure compliance with labor laws[193]. - The company conducted annual reviews of supplier capabilities, ensuring compliance with ISO9001 and ISO14001 standards[198]. - In 2021, the number of key suppliers in Hong Kong was 32, with no data available for 2020[199]. Audit and Compliance - The company appointed National Audit Limited as its auditor on April 29, 2021, to fill the vacancy left by the resignation of Deloitte Touche Tohmatsu on April 28, 2021[57]. - The external auditor, Guo Wei CPA Limited, was appointed on April 29, 2021, with audit fees amounting to approximately HKD 880,000 for the fiscal year, down from HKD 1,100,000 in the previous year[120]. - The fees for non-audit services paid to the external auditor were approximately HKD 20,000, a decrease from HKD 68,000 in the previous year[120]. - The company has established procedures to address any non-compliance situations, including immediate notification and investigation of incidents[151]. - The company is committed to protecting intellectual property and consumer privacy through appropriate licenses and confidentiality agreements[200].
凌锐控股(00784) - 2021 - 年度财报