Financial Performance - Total revenue for the fiscal year ended March 31, 2021, was approximately HKD 100.5 million, a decrease of 54.9% compared to HKD 223 million in the previous fiscal year[8]. - The construction segment generated revenue of approximately HKD 94.3 million, down from HKD 213 million in the previous year, with a gross margin increase to about 15.1% from 11.8%[9]. - The financing segment recorded revenue of approximately HKD 6.2 million, a decrease of 38.0% from HKD 10 million in the previous year[9]. - Total gross profit for the year was approximately HKD 20.5 million, a decrease of 41.7% from HKD 35.1 million in the previous year, with a gross margin of about 20.4%[8]. - The group recorded contract revenue related to construction and engineering services totaling HKD 94,325,000 for the year ended March 31, 2021[163]. Assets and Liabilities - As of March 31, 2021, the group's cash and bank balances were approximately HKD 90.2 million, down from HKD 136 million in the previous year[14]. - The net asset value as of March 31, 2021, was approximately HKD 332.7 million, compared to HKD 343.1 million in the previous year[14]. - The capital debt ratio was approximately 0.06 as of March 31, 2021, compared to 0.07 in the previous year[14]. - As of March 31, 2021, the group's trade receivables and contract assets amounted to approximately HKD 15,223,000 and HKD 40,896,000, respectively, with impairment losses of approximately HKD 10,030,000 and HKD 2,714,000 deducted[171]. - The group's accounts receivable and interest receivables amounted to approximately HKD 84,477,000, with impairment losses of about HKD 38,159,000 as of March 31, 2021[178]. Employee and Governance - The group had 18 employees as of March 31, 2021, a significant decrease from 73 employees in 2020[21]. - The company has established a mandatory provident fund scheme for all eligible employees in Hong Kong[22]. - The company’s board of directors includes both executive and independent non-executive members, ensuring a balanced governance structure[48]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced and independent governance structure[98]. - The company has maintained a competitive compensation package to retain employees[88]. Corporate Strategy and Future Outlook - The company plans to explore potential acquisition targets to develop its construction project business, primarily in the Hong Kong and Macau markets[13]. - The management anticipates that the performance of the financing business will return to levels similar to the previous year in the next fiscal year[9]. - The company believes that the resumption of its shares trading will significantly enhance its financing capabilities and operational capacity[13]. Compliance and Regulations - The group complies with various regulations related to personal data protection and employee welfare[26]. - The board confirmed compliance with corporate governance codes throughout the year[94]. - The company has not entered into any arrangements for the purchase of its own shares or debt securities[70]. - The independent auditor has confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2021[157]. Shareholder Engagement - The company encourages shareholder participation and communication, particularly during the annual general meeting[107]. - Shareholders can propose resolutions at the annual general meeting, requiring a minimum of 100 shareholders or 5% of voting rights[145]. - The company encourages shareholder attendance at all general meetings, with voting results published on its website[144]. Audit and Financial Reporting - The audit committee is tasked with reviewing the independence and effectiveness of the external auditor[123]. - The audit identified the recognition of contract revenue related to construction contracts as a key audit matter due to the complexity of the revenue recognition process[163]. - The management's estimates of expected credit losses involved significant judgments regarding the probability of default and loss rates[171]. - The audit procedures included sampling checks of customer settlement amounts related to trade receivables and contract assets as of March 31, 2021[172]. Impairment and Valuation - The group recognized an impairment provision of approximately HKD 9,260,000 for trade receivables and a reversal of impairment provision of HKD 443,000 for contract assets during the year[171]. - The management estimates the expected credit loss for accounts receivable based on a "three-stage" model, indicating significant management judgment in determining key assumptions[178]. - The fair value of the group's equity investment in a private company was approximately HKD 19,400,000 as of March 31, 2020[188]. - The board utilized significant management judgment to determine key assumptions for the equity valuation, including adjustments for lack of marketability and control premiums[192].
志道国际(01220) - 2021 - 年度财报