Financial Performance - The company recorded revenue of approximately HKD 919 million for the fiscal year ending March 31, 2021, a significant increase from HKD 202 million in the previous year, primarily due to the contribution from the concrete business[7]. - The concrete business generated approximately HKD 839 million in revenue, accounting for over 90% of the total revenue for the year[7]. - The company reported a profit attributable to owners of approximately HKD 44 million, a turnaround from a loss of HKD 78 million in the previous fiscal year[8]. - The group's revenue from continuing operations increased from approximately HKD 202,400,000 for the year ended March 31, 2020, to approximately HKD 919,300,000 for the year ended March 31, 2021, representing a threefold increase[14]. - Concrete business revenue rose by approximately HKD 746,700,000 or about 9 times, from approximately HKD 91,800,000 in 2020 to approximately HKD 838,500,000 in 2021, accounting for about 91.2% of total revenue[17]. - The group recorded a profit before tax of approximately HKD 19,900,000 for the year ended March 31, 2021, compared to a loss of approximately HKD 60,300,000 for the year ended March 31, 2020[31]. - The group reported a total comprehensive income attributable to owners of approximately HKD 50,200,000 for the year ended March 31, 2021, compared to a total comprehensive loss of approximately HKD 83,700,000 for the year ended March 31, 2020[41]. Business Strategy and Development - The company aims to further develop its concrete business by seeking potential investment opportunities in the same industry and plans to acquire small to medium-sized concrete manufacturing plants[8]. - The company is exploring the feasibility of vertical expansion through the acquisition of raw material businesses, such as sand and gravel[8]. - The company believes that Hainan Province will remain a key focus for its development, supported by the government's policies to establish it as a significant free trade port by 2050[8]. - The concrete business is expected to continue as a major growth driver, with plans to expand market share in Haikou City, China, due to strong future demand[66][67]. Cost Management and Financial Health - The company will continue to monitor global economic trends and market conditions to control operating costs and achieve better operational performance[10]. - The gross profit from continuing operations increased by approximately HKD 119,400,000 or 152.0%, from approximately HKD 78,600,000 in 2020 to approximately HKD 198,000,000 in 2021[21]. - The gross profit margin for the concrete business improved from approximately 12.3% in 2020 to approximately 18.5% in 2021, driven by higher average selling prices and strict cost control[22]. - The company completed the sale of its loss-making businesses, including digital technology, education, and coal trading, which is expected to improve net debt levels and provide additional financial resources[7]. - The group had cash and cash equivalents of approximately HKD 110,100,000 as of March 31, 2021, significantly up from approximately HKD 18,200,000 in the previous year[44]. - The current ratio improved to approximately 2.6 as of March 31, 2021, compared to approximately 1.8 in the previous year, indicating sufficient financial resources[44]. - The group’s capital debt ratio decreased to approximately 37.4% as of March 31, 2021, down from approximately 43.1% in the previous year[44]. Governance and Compliance - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange, except for the deviation where the Chairman also serves as the CEO, which the board believes is in the best interest of the company[85]. - The board consists of three executive directors and three independent non-executive directors, complying with the requirement of having at least three independent non-executive directors[96]. - The company has appointed Mr. Li Guotai as an independent non-executive director to meet the listing rules after a previous director resigned, ensuring compliance with the regulations[88]. - The company has implemented a set of securities trading standards for directors, confirming compliance throughout the fiscal year ending March 31, 2021[89]. - The board is responsible for overseeing the company's overall strategy, financial performance, and risk management systems[93]. - The company has established appropriate insurance coverage for its directors and executives against legal actions, with annual reviews of the coverage[97]. - All independent non-executive directors have confirmed their independence annually, and the nomination committee has assessed their independence[98]. Employee and Social Responsibility - The company employed a total of 267 employees as of March 31, 2021, with employee costs amounting to approximately HKD 52,600,000, an increase from HKD 33,100,000 in the previous year[63]. - The company has established training programs and diverse career development paths for employees[145]. - The company made charitable donations of approximately HKD 180,000 for the year ended March 31, 2021, compared to none in 2020[174]. Risk Management - The company has identified several major risks, including business and financial risks related to the termination of relationships with key customers[148]. - The company maintains a cautious credit control strategy to balance business development and risk exposure in the lending sector[69]. - The tightening of regulatory measures may lead to some resource-limited competitors exiting the market, which could enhance the group's profitability outlook[69]. Shareholder Information - The company has adopted a dividend policy that balances sufficient funding for business growth and shareholder returns, considering operational performance and financial condition[125]. - The company reported a final dividend of HK$0.3 per share for the year ended March 31, 2021, compared to zero in the previous year[141]. - The company encourages shareholders to attend annual general meetings to discuss business developments[133].
华盛国际控股(01323) - 2021 - 年度财报