Financial Performance - Total revenue decreased by approximately HKD 10.7 million or 8.9% to about HKD 110.1 million for the fiscal year ended March 31, 2020, compared to approximately HKD 120.8 million for the previous year[9] - Net profit for the year dropped by approximately HKD 6.9 million or 28.6% to about HKD 17.2 million, primarily due to reduced revenue and gross profit, as well as increased other expenses including professional service fees related to the transfer listing[9] - Revenue decreased by approximately 8.9% from about HKD 120.8 million for the year ended March 31, 2019, to about HKD 110.1 million for the year ended March 31, 2020[15] - Total comprehensive income decreased by approximately 28.6% from about HKD 24.1 million to about HKD 17.2 million, primarily due to reduced revenue and gross profit[27] - Direct costs decreased by approximately 11.0% from about HKD 81.8 million to about HKD 72.8 million, consistent with the revenue decline[17] - Gross profit decreased by approximately 4.4% from about HKD 39.0 million to about HKD 37.3 million, with a slight increase in gross profit margin from 32.3% to 33.9%[18] - Bank interest income increased to approximately HKD 898,000 from HKD 649,000, reflecting an increase in short-term deposits[19] - As of March 31, 2020, the group maintained a strong financial position with cash and bank balances of approximately HKD 81.8 million, up from HKD 65.4 million[28] - The current ratio as of March 31, 2020, was approximately 10.4 times, down from 11.8 times[29] - The company had no interest-bearing bank borrowings as of March 31, 2020[30] Contracts and Projects - The company remains optimistic about the Hong Kong fire safety market, having secured significant contracts including a project for upgrading and replacing an automatic fire alarm system with a total contract value exceeding HKD 10 million[9] - The company was awarded a major contract for the Jockey Club Integrated Health Building at City University of Hong Kong, with a contract value exceeding HKD 31 million, marking the largest contract amount since its establishment[9] - The company experienced project delays primarily due to other contractors' delays on the same projects, but expects to complete these projects within the fiscal year ending March 31, 2021[13] COVID-19 Impact and Response - The company has communicated with major suppliers and subcontractors to ensure a continuous and sufficient supply of materials, equipment, and manpower amid the COVID-19 pandemic[13] - The company anticipates that the COVID-19 outbreak will not have a significant adverse impact on its business operations and sustainability[13] Corporate Governance - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a diverse governance structure[62] - The company has adopted a board diversity policy aiming for at least one female director by December 31, 2022, depending on suitable candidates[65] - The company has confirmed compliance with corporate governance codes, except for a deviation regarding the separation of the roles of chairman and CEO[59] - The board is responsible for overseeing the company's compliance with legal and regulatory requirements, ensuring accountability and transparency[62] - The company has maintained a strong commitment to corporate governance, which is deemed essential for long-term success and sustainable development[59] - The company held four board meetings and one annual general meeting in the fiscal year ending March 31, 2020[75] - All directors attended 100% of the board meetings and the annual general meeting[76] - The Audit Committee held four meetings during the fiscal year, with all members attending every meeting[83] - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk and Technology Committee[82] - The Remuneration Committee met once in the fiscal year and reviewed the remuneration of directors and senior management[86] - The Nomination Committee also met once in the fiscal year, reviewing the board's structure and recommending the reappointment of retiring directors[90] - The company has purchased appropriate insurance for its directors and senior management against potential legal actions[81] - All directors participated in training related to good corporate governance practices during the fiscal year[79] - The company is committed to ensuring compliance with current listing rules and corporate governance codes[79] - The Audit Committee recommended the reappointment of Deloitte as the company's external auditor at the annual general meeting[85] Employee Relations and Human Resources - As of March 31, 2020, the group employed a total of 45 employees, down from 48 employees in the previous year[41] - Employee costs for the year ended March 31, 2020, were approximately HKD 12.9 million, compared to HKD 15.5 million in 2019, reflecting a decrease of about 16.8%[41] - The group has maintained good relationships with employees, with no significant issues or labor disputes reported during the year[41] - The group has established long-term relationships with five major clients, with business ties ranging from 1 to 7 years[49] - The group has provided competitive compensation packages to attract and retain high-quality employees, including performance-based bonuses and stock options[41] - The company emphasizes that employees are its most valuable asset and has implemented human resource management policies to maximize their potential[164] - Employees receive competitive compensation linked to performance and experience, including benefits such as holidays, medical plans, and discretionary bonuses[165] - The company provides ongoing training and development programs to enhance employee skills, including external training from experienced consultants[176] - Continuous education funding is offered to employees to support their personal development and encourage participation in relevant courses[177] - The company strictly prohibits child labor and forced labor in its recruitment process, complying with local laws and regulations[179] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to integrating environmental, social, and governance (ESG) principles into its risk management system to align with sustainable business practices[118] - The company has established an ESG working group to collect relevant data and assess risks related to environmental, social, and governance factors[119] - The ESG report covers the group's main operational revenue activities, including installation and maintenance of fire safety systems and sales of fire equipment[120] - The company has implemented measures to reduce direct greenhouse gas emissions, including optimizing operational procedures and regular vehicle maintenance[141] - The total greenhouse gas emissions decreased from approximately 64.50 tons of CO2 equivalent in 2019 to about 62.33 tons in 2020, representing a reduction of approximately 3%[141] - The total paper waste disposal decreased by approximately 19% from about 2.24 tons in 2019 to about 1.82 tons in 2020[146] - The company has implemented policies for effective resource usage, including energy, water, and other raw materials[200] - The company has adopted green procurement strategies and aims to minimize environmental impact through reduction, reuse, recycling, and replacement[159] - The company has established guidelines for hazardous waste management and disposal, ensuring compliance with environmental regulations[149] - The company has described its methods for handling hazardous and non-hazardous waste, along with measures to reduce generation[198] Community Engagement - The company has donated HKD 7,500 to support the "Star Plan" for underprivileged students in rural areas of China, and HKD 75,000 to the Po Leung Kuk Child Sponsorship Program[196] - The company purchased sports equipment worth HKD 10,200 for the Hong Kong rugby team to support children's sports development[196] - The company encourages employee participation in community activities to foster social responsibility and positive values[195]
莹岚集团(01162) - 2020 - 年度财报