Financial Performance - The group's revenue increased by approximately 41.0% to about HKD 312.1 million for the year ended March 31, 2020, compared to HKD 221.3 million for the previous year[6]. - The loss attributable to owners of the company decreased significantly from approximately HKD 45.5 million in the previous year to about HKD 15.6 million in the current year[6]. - The improvement in performance was primarily due to the commencement of infrastructure projects in Hong Kong, leading to a substantial increase in revenue from construction machinery leasing[6]. - The company's total revenue for the year was approximately HKD 312.1 million, an increase of 41.0% from HKD 221.3 million in the previous year[18]. - Revenue from construction projects was approximately HKD 118.4 million, accounting for 37.9% of total revenue, up from HKD 82.8 million (37.4%) in the previous year[19]. - Revenue from construction machinery leasing was approximately HKD 193.7 million, representing 62.1% of total revenue, an increase from HKD 132.0 million (59.6%) in the previous year[21]. - The gross profit for the year was approximately HKD 13.3 million, a significant improvement from a gross loss of HKD 19.3 million in the previous year, with a gross profit margin of 4.3%[23]. - The net loss for the year was approximately HKD 15.6 million, a reduction from a loss of HKD 45.5 million in the previous year, primarily due to increased revenue and improved gross margins[25]. - The company reported a pre-tax loss of HKD 14,422,000 for 2020, improving from a loss of HKD 44,725,000 in 2019[187]. - Total comprehensive loss for the year was HKD 15,618,000, down from HKD 45,499,000 in the previous year[187]. - Basic and diluted loss per share improved to HKD 1.50 compared to HKD 4.39 in 2019[187]. Business Operations - Business operations have gradually resumed since March 2020 after a temporary suspension due to the COVID-19 pandemic[12]. - The company aims to enhance its competitiveness and profitability through improved bidding strategies and service offerings[7]. - The company will continue to focus on undertaking new construction projects and machinery leasing arrangements in Hong Kong for future business development[13]. - The company has eight ongoing projects with a total uncompleted contract value of HKD 32.3 million, with six expected to be completed by March 31, 2021[19]. - The group secured a foundation contract worth approximately HKD 89.7 million after March 31, 2020, contributing to a total uncompleted contract value of about HKD 122.0 million[40]. - The company is actively participating in both public and private sector construction projects to mitigate market risks associated with government infrastructure projects[16]. Investments and Acquisitions - The company established a subsidiary in Hong Kong for aluminum formwork system leasing, acquiring 51% of the issued shares for HKD 5,100[11]. - The company sold all equity in a joint venture aimed at renting aluminum formwork systems in China due to the changing business environment[11]. - The group has not engaged in any significant investments or acquisitions during the year[35]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $30 million allocated for potential deals[22]. Environmental and Social Responsibility - The company has invested in upgrading its rental fleet with new environmentally friendly equipment to ensure the provision of high-quality and reliable machinery to the construction market[10]. - The company has implemented energy-saving measures and adopted cleaner energy sources to reduce carbon emissions[142]. - The company has not produced any hazardous waste during the reporting year and complied with environmental regulations[144]. - The company encourages a paperless office environment, promoting electronic communication and document usage to minimize paper consumption[145]. - The total greenhouse gas emissions decreased from 4,571 tons in 2019 to 3,439 tons in 2020, representing a reduction of approximately 24.7%[143]. - The company has established a recycling program to promote waste reduction and resource conservation among employees[145]. - The company is committed to enhancing its environmental, social, and governance (ESG) performance through regular assessments and policy implementations[138]. Corporate Governance - The board emphasized the importance of corporate governance, ensuring transparency and accountability in all operations[22]. - The company maintained compliance with all regulatory requirements, reinforcing its commitment to good corporate governance practices[22]. - The board held five regular meetings and one annual general meeting during the year, with all executive directors attending all meetings[112]. - The audit committee, composed of three independent non-executive directors, held two meetings to review the audited financial statements for the year ended March 31, 2019[118]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and industry experience in board composition[113]. - The company has established three committees: audit committee, nomination committee, and remuneration committee, with specific members assigned to each[116]. - The company has adopted a dividend policy that considers actual and expected financial performance, retained earnings, and other internal or external factors when deciding on dividend declarations[129]. Financial Position - As of March 31, 2020, the group's bank balance was approximately HKD 13.5 million, a decrease from HKD 42.7 million in 2019, primarily due to the acquisition of new machinery[27]. - The total interest-bearing liabilities as of March 31, 2020, amounted to approximately HKD 100.3 million, down from HKD 104.8 million in 2019, resulting in a debt-to-equity ratio of about 53.3%[27]. - The group employed 386 staff as of March 31, 2020, with total employee costs of approximately HKD 116.7 million, compared to HKD 89.0 million in 2019[30]. - Non-current assets increased to HKD 145,130,000 in 2020 from HKD 113,566,000 in 2019[188]. - Current assets decreased to HKD 217,658,000 in 2020 from HKD 237,708,000 in 2019[188]. - Total liabilities decreased to HKD 174,294,000 in 2020 from HKD 147,369,000 in 2019[190]. - Cash and cash equivalents at year-end were HKD 13,507,000, down from HKD 42,655,000 at the beginning of the year[194]. - Operating cash flow for 2020 was HKD 70,528,000, an increase from HKD 45,113,000 in 2019[193]. Compliance and Risk Management - The independent auditor has audited the consolidated financial statements for the year ending March 31, 2020[83]. - The independent auditor's report emphasizes the importance of evaluating the appropriateness of accounting policies and the reasonableness of accounting estimates and disclosures made by the company's directors[181]. - The audit committee is responsible for overseeing the financial reporting process of the company[180]. - The company engaged an independent consultant to review the effectiveness of its risk management and internal control systems, implementing recommendations to enhance internal controls[126]. - The board believes that the risk management and internal control systems remain effective for the year[126]. Employee and Labor Relations - The company has implemented strict recruitment procedures to prevent child labor and forced labor, with no incidents reported in the fiscal year ending March 31, 2020[157]. - The employee turnover rate for the year was approximately 3%, with male employees having a turnover rate of 3% and female employees at 6%[151]. - The company reported a total of 6 work-related injuries in 2020, an increase from 5 in 2019, with a total of 814 workdays lost due to injuries[154]. - The company emphasizes training and development, providing equal training opportunities for employees at all levels[156]. Customer Relations - The group has established dedicated customer communication channels to effectively handle inquiries and feedback[159]. - The largest customer accounted for 17.63% of total revenue in 2020, down from 34.3% in 2019[75]. - The top five customers collectively represented 51.83% of total revenue in 2020, compared to 50.4% in 2019[75]. - The group has not received any customer complaints regarding service and construction quality for the year ended March 31, 2020[160].
进升集团控股(01581) - 2020 - 年度财报