Financial Performance - The group's revenue decreased by approximately 71.7% from about HKD 536.6 million to about HKD 151.8 million for the year[13]. - Revenue from building construction services dropped from approximately HKD 369.1 million to about HKD 21.8 million, a decline of about 94.1%[13]. - Direct costs reduced by approximately 72.6% from about HKD 482.4 million to about HKD 132.3 million, consistent with the revenue decrease[14]. - Gross profit fell by approximately 64.0% from about HKD 54.2 million to about HKD 19.5 million due to reduced revenue and project numbers[16]. - Overall gross margin increased from approximately 10.1% in the previous year to about 12.8% in the current year[17]. - The total profit and comprehensive income increased from approximately HKD 12,700,000 in the previous year to about HKD 21,100,000 in the current year, an increase of approximately HKD 8,400,000[25]. - Administrative expenses rose by approximately 22.8%, from HKD 26,200,000 in the previous year to about HKD 32,100,000 in the current year[20]. - Income tax expenses increased by approximately 61.0%, from HKD 2,600,000 in the previous year to about HKD 4,200,000 in the current year due to an increase in taxable profits[24]. Strategic Focus and Future Outlook - The group will continue to focus on existing businesses and seek suitable projects aligned with overall strategy, including expanding the modular construction market[8]. - The group aims to enhance its market position by targeting projects with design for manufacturing and assembly (DfMA) elements and exploring joint venture opportunities[8]. - The acquisition of a property in Tsuen Wan is expected to create synergies with existing construction operations and diversify the business[12]. - The group maintains a positive outlook for the construction industry due to favorable long-term housing infrastructure policies from the Hong Kong government[8]. - The group plans to invest in advanced construction technologies, including Building Information Modeling (BIM) and 3D scanning and printing[8]. - The group will continue to seek opportunities for real estate development in collaboration with property investors and developers[12]. Cash Flow and Financial Position - As of March 31, 2021, the company's bank balance and cash amounted to approximately HKD 92,300,000, compared to HKD 60,900,000 in the previous year[27]. - The capital-to-debt ratio as of March 31, 2021, was approximately 22.1%, up from 1.2% in the previous year[28]. - The company has committed to provide capital injection totaling HKD 188,650,000 to a joint venture, with HKD 74,694,000 already provided as of March 31, 2021[33]. - The company held rental income of approximately HKD 1,200,000 from an investment property, significantly up from HKD 255,000 in the previous year[19]. Governance and Compliance - The management team emphasized a commitment to corporate governance, ensuring compliance with all regulatory requirements[65]. - The board of directors has approved a new risk management framework to mitigate potential operational risks[66]. - The company ensures compliance with the corporate governance code and has established clear responsibilities for its committees[80]. - The board is responsible for preparing the consolidated financial statements in accordance with statutory requirements and applicable accounting standards[76]. - Independent non-executive directors confirmed their independence as per the listing rules, ensuring no conflicts of interest[72]. - The company has a remuneration committee and a nomination committee to oversee the appointment and compensation of directors[70]. - The audit committee is responsible for corporate governance functions, including reviewing governance policies and compliance with legal regulations[98]. Environmental Management - The company has established an Environmental Management System (EMS) certified by SGS since 2009, compliant with ISO 14001:2015[125]. - The company has implemented measures to minimize dust emissions, including limiting vehicle speed to 5 km/h on construction sites[128]. - The company has achieved waste avoidance and recycling targets in compliance with the BEAM Plus rating system[134]. - The company has set appropriate goals for continuous improvement in waste management performance[134]. - The company has joined the Hong Kong Green Organization Certification for waste reduction and encourages employee participation in environmental initiatives[137]. - The company has implemented noise reduction measures and regularly monitors noise impact at construction sites[161]. Social Responsibility and Employee Welfare - The company ensures equal employment opportunities regardless of age, gender, marital status, pregnancy, family situation, disability, race, nationality, or religion[164]. - The company is committed to employee training and development, investing resources to enhance employee performance and capabilities for future responsibilities[175]. - There were no violations of child labor and forced labor laws during the reporting period[177]. - The company maintains high standards in supply chain management, ensuring suppliers meet criteria related to quality, reliability, and social responsibility[179]. Community Engagement - The company participated in various community activities, including the Hong Kong Construction Safety Award and the Hong Kong Environmental Excellence Award[191].
德莱建业(01546) - 2021 - 年度财报