Financial Performance - The group's revenue increased by approximately 39.6% to about HKD 435.6 million for the year ended March 31, 2021, compared to HKD 312.1 million for the previous year[7]. - The loss attributable to the company's owners decreased from approximately HKD 15.6 million in the previous year to a profit of about HKD 3.7 million for the current year[7]. - The group's total revenue for the year was approximately HKD 435.6 million, an increase of 39.6% from HKD 312.1 million in the previous year[19]. - Revenue from construction projects was approximately HKD 194.5 million, accounting for 44.6% of total revenue, up from 37.9% in the previous year[20]. - Revenue from construction machinery leasing was approximately HKD 241.1 million, representing 55.4% of total revenue, down from 62.1% in the previous year[23]. - The group's gross profit increased to approximately HKD 21.9 million, with a gross profit margin of 5.0%, compared to HKD 13.3 million and 4.3% in the previous year[24]. - Other income for the year was approximately HKD 16.0 million, a significant increase of 255.9% from HKD 4.5 million in the previous year, mainly due to non-recurring government subsidies[27]. - The net profit for the year was approximately HKD 3.7 million, a turnaround from a loss of HKD 15.6 million in the previous year[30]. Business Operations - The group secured two new projects and obtained nine new contracts from existing projects, totaling approximately HKD 251.7 million[7]. - The construction machinery leasing business improved significantly due to the demand from new foundation projects and infrastructure works in Hong Kong[12]. - The group has terminated the operation of the construction machinery sales segment due to difficulties in identifying potential customers[12]. - The group will continue to pursue new construction projects and leasing arrangements in Hong Kong for business development[13]. - The group plans to actively participate in bidding for new public and private construction projects to maintain market share amid increasing competition[20]. - The group has six ongoing projects with a total uncompleted contract value of approximately HKD 148.1 million, expected to be completed by March 31, 2023[20]. Government Support and Market Outlook - The group received non-recurring government subsidies related to COVID-19, which contributed to the overall performance improvement[12]. - The construction market in Hong Kong is expected to reverse in the coming years due to increased government investment in public works[11]. - The group anticipates a rebound in the construction industry due to government commitments to infrastructure spending averaging HKD 100 billion annually over the next few years[45]. Financial Position and Liabilities - The total interest-bearing liabilities as of March 31, 2021, were approximately HKD 114.3 million, an increase from HKD 100.3 million in the previous year, with a debt-to-equity ratio of 59.5%[32]. - The retained earnings available for distribution to shareholders as of March 31, 2021, were approximately HKD 37.085 million[61]. - The group reported no significant contingent liabilities as of March 31, 2021, and had no major investments or acquisitions during the year[39][41]. Employee and Labor Relations - The group employed 512 staff as of March 31, 2021, up from 386 in 2020, with total employee costs amounting to approximately HKD 149.7 million, an increase from HKD 116.7 million in 2020[35]. - The employee turnover rate for the year was approximately 8%, with 27% of female employees leaving and 7% of male employees[160]. - The company has maintained competitive salary and benefits levels for employees, with no significant labor disputes reported during the year[35]. - The company provides a full set of personal protective equipment to employees on construction sites[166]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance and transparency in operations[110]. - The board consists of five members, including two executive directors and three independent non-executive directors, enhancing decision-making with diverse expertise[113]. - The company emphasizes the importance of effective corporate governance practices to enhance shareholder value and protect stakeholder interests[109]. - The independent non-executive directors have confirmed their independence annually, complying with the listing rules[114]. - The company has a strong focus on internal controls and accountability within its governance framework[109]. Environmental and Social Responsibility - The group has been actively implementing environmentally friendly measures to minimize adverse environmental impacts[92]. - The company has maintained compliance with environmental regulations, with no significant non-compliance issues reported during the year[153]. - The company is committed to continuous improvement in energy efficiency and environmental performance, verified by ISO 14001 certification[155]. - The company has implemented various energy-saving measures and adopted clean energy strategies to mitigate environmental impact[151]. - The group is committed to corporate social responsibility by contributing to the local community, including donations to the Hong Kong Construction Association[176]. Audit and Financial Reporting - The independent auditor, Shinewing (HK) CPA Limited, audited the consolidated financial statements for the year ending March 31, 2021, and is eligible for reappointment at the annual general meeting[87]. - The company is responsible for preparing financial statements that are true and fair according to the Hong Kong Financial Reporting Standards and the Companies Ordinance[194]. - The auditor's responsibility is to provide reasonable assurance that the financial statements are free from material misstatement due to fraud or error[196]. - The independent auditor's report was issued on June 28, 2021, confirming the appropriateness of the going concern basis of accounting[200].
进升集团控股(01581) - 2021 - 年度财报