Financial Performance - The Group's overall revenue increased by approximately 84.7% to approximately HK$374,903,000 for the year ended 31 March 2020, compared to HK$203,015,000 in 2019[9] - The profit attributable to owners of the Company for the year ended 31 March 2020 amounted to approximately HK$1,009,000, a turnaround from a loss of approximately HK$29,107,000 in 2019[9] - The overall gross profit increased by 2,135.5% from approximately HK$1,827,000 for the year ended 31 March 2019 to approximately HK$40,842,000 for the year ended 31 March 2020[18] - The gross profit margin increased from approximately 0.9% for the year ended 31 March 2019 to approximately 10.9% for the year ended 31 March 2020[18] - The Group reported a net profit of approximately HK$1,009,000 for the year ended 31 March 2020, compared to a net loss of approximately HK$29,107,000 for the year ended 31 March 2019[21] Contract and Project Management - The outstanding value of contracts on hand as of 31 March 2020 was approximately HK$310 million, up from approximately HK$248 million in 2019[9] - The Group has been awarded 3 foundation projects with an original contract sum of approximately HK$1,242 million after 31 March 2020, indicating a strong pipeline[9] - As of 31 March 2020, there were a total of 13 projects in progress, with 5 new projects awarded during the year[18] - The increase in revenue was mainly due to the increase in the number of active projects, particularly a new project that commenced in September 2019[18] Cost Management and Financial Position - The Group plans to adopt different tendering strategies and implement tight cost control to maintain competitiveness amid challenges in the foundation industry due to social unrest and Covid-19[12] - As of March 31, 2020, the total debts of the Group amounted to approximately HK$152,862,000, an increase from approximately HK$134,140,000 in 2019, representing a growth of about 13%[24] - The gearing ratio as of March 31, 2020, was approximately 165.4%, compared to 146.8% in 2019, reflecting an increase of about 12.0%[28] - The current ratio of the Group was approximately 1.5 as of March 31, 2020, down from approximately 1.8 in 2019, indicating a decrease of about 16.7%[28] Governance and Corporate Structure - The Board is committed to achieving high standards of corporate governance and continuously reviews and improves governance practices and business ethics[46] - The Company has complied with all applicable code provisions of the Corporate Governance Code as of March 31, 2020[46] - The Board currently comprises five members, including two Executive Directors and three Independent Non-executive Directors[52] - The Company has adopted a Board Diversity Policy, considering factors such as gender, age, and professional experience in Board appointments[54] - The Board has delegated day-to-day management responsibilities to senior management while overseeing strategic decisions and performance[49] Environmental Performance - The Group's Nitrogen Oxides (NOx) emissions increased by 18.6% to 787.3 grams in 2020 from 663.6 grams in 2019[166] - Sulfur Oxides (SOx) emissions rose by 18.5% to 13,597.8 grams in 2020 compared to 11,472.0 grams in 2019[166] - Particulate Matter (PM) emissions increased by 18.6% to 58.0 grams in 2020 from 48.9 grams in 2019[166] - The Group's environmental management system is accredited with ISO 14001:2015 and ISO 50001:2018 certifications[162] - The Group is committed to minimizing environmental impacts and has implemented measures to reduce waste and resource consumption[157] Internal Controls and Risk Management - The Board conducted an annual review of the effectiveness of the Group's risk management and internal control procedures during the year ended 31 March 2020, with no significant areas of improvement identified[130] - The Company has implemented adequate measures for internal audit functions despite not establishing a standalone internal audit department during the year[127] - The Group's risk management procedures aim to provide reasonable assurance that assets are safeguarded and accounting records are reliable[127] - The Board is satisfied that the Group's internal control procedures, including financial, operational, and compliance controls, are effective and adequate[130] Employee and Training - The total staff costs incurred by the Group during the year ended March 31, 2020, were approximately HK$52,736,000, slightly up from approximately HK$52,521,000 in 2019, representing an increase of about 0.4%[40] - As of March 31, 2020, the Group had 132 employees, a decrease from 137 employees in 2019, indicating a reduction of about 3.6%[40] - The Company arranged seminars for Directors as continuing professional training for corporate governance and compliance purposes[85] Dividend Policy - The Company has adopted a Dividend Policy to guide the Board in determining dividend declarations and amounts[139] - The Board considers the Group's actual and expected financial performance when deciding on dividends[139] - The liquidity position of the Group is a factor in determining dividend payments[139] - The Group does not have a predetermined dividend distribution ratio and reserves the right to modify its Dividend Policy at any time[143]
剑虹集团控股(01557) - 2020 - 年度财报