Financial Performance - Total revenue decreased by approximately HKD 52.5 million or 47.7% to about HKD 57.6 million for the fiscal year ending March 31, 2021, compared to approximately HKD 110.1 million for the previous year[8]. - The company reported a loss of approximately HKD 0.5 million, a decrease of about HKD 17.7 million or 102.9% from a profit of approximately HKD 17.2 million in the previous fiscal year[8]. - Revenue decreased by approximately 47.7% from HK$110.1 million for the year ended March 31, 2020, to HK$57.6 million for the year ended March 31, 2021, primarily due to a reduction in new contracts for fire safety system installations[16]. - Gross profit fell by approximately 59.5% from HK$37.3 million for the year ended March 31, 2020, to HK$15.1 million for the year ended March 31, 2021, with a slight decrease in gross profit margin from 33.9% to 26.3%[19]. - Administrative expenses have increased, contributing to the overall decline in performance for the fiscal year[8]. - Other income increased by approximately 177.8% from HK$0.9 million for the year ended March 31, 2020, to HK$2.5 million for the year ended March 31, 2021, mainly due to government subsidies received[20]. Market Outlook - The company has a total unconfirmed revenue of up to HKD 100 million, with significant projects including a HKD 31 million contract for the City University of Hong Kong and two contracts exceeding HKD 20 million each[10]. - The company is optimistic about the Hong Kong fire safety market in the second half of the fiscal year, with an increase in bidding opportunities and higher bid amounts compared to previous years[10]. - The impact of COVID-19 has led to delays in project schedules and a decrease in inquiries for fire safety installation services for existing buildings[12]. - The construction market is experiencing intense competition, resulting in a decline in the number of public tenders and contract prices, negatively affecting contract revenue[13]. - The company plans to leverage the anticipated economic recovery in Hong Kong to expand its revenue base and achieve long-term growth[10]. Operational Efficiency - Direct costs decreased by approximately 41.6% from HK$72.8 million for the year ended March 31, 2020, to HK$42.5 million for the year ended March 31, 2021, aligning with the revenue decline[18]. - Administrative expenses rose by approximately 34.8% from HK$11.5 million for the year ended March 31, 2020, to HK$15.5 million for the year ended March 31, 2021, primarily due to increased employee costs[22]. - As of March 31, 2021, the company maintained a strong liquidity position with cash and bank balances of approximately HK$53.7 million, down from HK$81.8 million as of March 31, 2020[28]. - The current ratio as of March 31, 2021, was approximately 17.6 times, compared to 10.4 times as of March 31, 2020[29]. - The company had no interest-bearing bank borrowings as of March 31, 2021, consistent with the previous year[30]. Human Resources - As of March 31, 2021, the group employed a total of 40 employees, down from 45 employees in the previous year[40]. - Employee costs for the year ended March 31, 2021, amounted to approximately HKD 17.4 million, an increase from HKD 12.9 million in 2020[40]. - The group has maintained good relationships with employees, with no significant issues or labor disputes reported during the year[40]. - The proportion of female employees increased from 20% in 2020 to 25% in 2021, with a total of 40 employees as of March 31, 2021[162]. - The company employs a consultant engineer with over 30 years of experience to provide training and technical support, enhancing employee skills in modern fire protection technology[177]. Corporate Governance - The company aims to maintain high corporate governance standards to enhance accountability and transparency, ensuring shareholder value creation[55]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[59]. - The company has confirmed compliance with the corporate governance code, except for a deviation regarding the separation of the roles of chairman and CEO[56]. - The board regularly reviews and monitors compliance with legal and regulatory requirements, ensuring effective governance practices[59]. - The company has established four board committees: audit, remuneration, nomination, and risk and technology[78]. Environmental, Social, and Governance (ESG) Initiatives - The group has established an Environmental, Social, and Governance (ESG) working group to collect relevant data and assess ESG risks[114]. - The total greenhouse gas emissions decreased from approximately 62.33 tons of CO2 equivalent in 2020 to about 54.49 tons in 2021, representing a reduction of approximately 13%[135]. - The company is committed to continuous improvement of its environmental management system to minimize negative environmental impacts[130]. - The company adheres to local environmental laws and regulations, including the Air Pollution Control Ordinance and the Noise Control Ordinance[130]. - The company has established procedures to assess environmental risks in accordance with ISO 14001 standards[157]. Community Engagement - Community investment is a strategic focus, aiming to support social stability and improve the quality of life for underprivileged individuals[197]. - The company donated HKD 7,000 to support the "Star Picking Program" aimed at assisting underprivileged students in rural areas of mainland China[198]. - A total of HKD 75,000 was donated to the Po Leung Kuk Child Sponsorship Program, benefiting 50 children, demonstrating the company's commitment to local youth[198]. - The company sponsored HKD 120,000 to the One Well Dunk! basketball team to encourage young talents to pursue their dreams[198].
莹岚集团(01162) - 2021 - 年度财报