Financial Performance - The group recorded revenue of approximately HKD 1,444 million for the fiscal year ending March 31, 2021, an increase of about HKD 10 million or 7.4% compared to the previous year[5]. - The net loss for the year was approximately HKD 6.1 million, a reduction of about HKD 27 million from a net loss of HKD 33.1 million in the previous year[5][18]. - Gross profit for the year was approximately HKD 23.1 million, improving from a gross loss of HKD 6.1 million in the previous year, resulting in a gross profit margin of 16.0%[14]. - Other income increased from approximately HKD 1.1 million to about HKD 4.9 million, driven by rental income and government subsidies related to COVID-19[15]. - Administrative and other operating expenses rose by approximately HKD 0.7 million or 3.0% to about HKD 22.8 million[16]. - Financial assets and contract assets impairment losses increased to approximately HKD 11.6 million, up from about HKD 3.0 million in the previous year[17]. Projects and Contracts - The group has 10 ongoing projects with a total original contract value of approximately HKD 200.6 million as of March 31, 2021[9]. - Two new projects were awarded after March 31, 2021, with a total original contract value of approximately HKD 92.3 million[10]. Liquidity and Financial Position - As of March 31, 2021, the group had total bank balances (including pledged bank deposits) of approximately HKD 448 million, compared to HKD 395 million as of March 31, 2020[33]. - The group had no outstanding debts as of March 31, 2021, and March 31, 2020[34]. - The group had a zero debt-to-equity ratio as of March 31, 2021, consistent with the previous year[36]. - As of March 31, 2021, the group had pledged bank deposits of approximately HKD 5.0 million to secure bank financing, compared to HKD 3.7 million in the previous year[38]. Corporate Governance - The company has a commitment to maintaining good corporate governance to maximize shareholder value[69]. - The board consists of six members, including three executive directors and three independent non-executive directors[71]. - The company has adopted a diversity policy for board members, considering factors such as gender, age, cultural background, and professional experience[74]. - The board's nomination committee monitors the implementation of the diversity policy and reviews nomination policies to ensure effectiveness[77]. - The company considers various factors when determining dividends, including operating performance, cash flow, and future investment needs[80]. - The chairman and CEO positions are held by different individuals to ensure a balance of power and authority[81]. - The financial director oversees financial reporting, planning, and treasury matters, bringing over 20 years of experience in finance[66]. - The technical director has over 40 years of experience in the construction industry, providing technical support for foundation engineering[65]. - The company has complied with the corporate governance code throughout the review year[69]. - The board has adopted a standard code of conduct for securities trading by directors, ensuring compliance with regulations[70]. - The board consists of three independent non-executive directors, accounting for over one-third of the board members, in compliance with listing rules[82]. - The board held four meetings during the review year, with all directors confirming they dedicated sufficient time and attention to the group's affairs[117][119]. - The company has established three board committees: Audit Committee, Nomination Committee, and Remuneration Committee, to oversee specific matters[121]. - The company provides adequate resources for each committee to fulfill its responsibilities and can seek independent professional advice when necessary[122]. - The board is responsible for setting long-term goals and strategies, approving major policies, and reviewing financial statements[87]. - The company has received annual confirmations of independence from all independent non-executive directors[82]. - The company ensures that all directors receive appropriate insurance for their responsibilities[91]. - The company arranges internal training for directors to enhance their knowledge and skills[92]. - The Audit Committee held two meetings during the review year to oversee the financial reporting system and risk management processes[124]. - The Audit Committee reviewed the independence and objectivity of the external auditor and recommended their reappointment to the Board[124]. - The company paid HKD 700,000 for audit services and HKD 120,000 for non-audit services during the review year[141][146]. - The company confirmed that there are no significant uncertainties that would raise doubts about its ability to continue as a going concern[144]. - The company employs a "three lines of defense" model for risk management and internal control, ensuring effective risk assessment and mitigation[147]. - The Nomination Committee held one meeting during the review year to evaluate the structure and diversity of the Board[133]. - The company has established a framework for reviewing the independence of independent non-executive directors[134]. - The Audit Committee reviewed the financial statements and confirmed compliance with applicable accounting standards and regulations[124]. - The company has not encountered any disagreements between the Board and the Audit Committee during the review year[130]. - The company has established guidelines and procedures for approving and controlling expenditures to ensure the reliability of financial reporting and compliance with applicable laws and regulations[150]. - The board has taken appropriate measures to fulfill internal audit functions, and external professionals have been engaged to review the effectiveness of the risk management and internal control systems[150]. Environmental and Social Responsibility - The company values stakeholder feedback and encourages input on environmental, social, and governance policies and performance[165]. - A comprehensive materiality assessment was conducted to identify and evaluate environmental, social, and governance issues arising from the company's business[166]. - Total energy consumption for the year was 3,660,000 kWh, a decrease from 4,900,000 kWh in the previous year, resulting in a density of 25,345 kWh per million HKD in revenue[176]. - Greenhouse gas emissions decreased by 8.0% to 986 tons, with direct emissions at 844 tons and indirect emissions at 142 tons[176]. - Diesel fuel consumption decreased significantly, although it remains the primary source of greenhouse gas emissions for the company[176]. - The company generated 36,265 tons of construction waste, an increase from 29,196 tons in the previous year, with a density of 251 tons per million HKD in revenue[179]. - Nitrogen oxides emissions slightly decreased by 0.7% to approximately 430 kg, while sulfur oxides decreased by 28.6% to about 5 kg[177]. - The company implemented various energy-saving measures, including the use of energy-efficient equipment and reducing vehicle idle time[169]. - The total paper consumption was 796 kg, showing a slight increase from 754 kg in the previous year[175]. - The company has not generated any hazardous waste during the review period, with all waste properly disposed of according to regulations[170]. - The company continues to prioritize partnerships with suppliers that have environmentally friendly products and practices[180]. - The company is committed to balancing business development with reducing negative environmental impacts, adhering to a systematic approach to monitor fuel consumption[180]. Workforce and Employee Management - The employee turnover rate improved from approximately 44% in the previous year to about 17% in the reviewed year, with the highest turnover rate observed in the 41 to 50 age group[190]. - As of March 31, 2021, the company had a total of 61 employees, which included 13 new hires and 10 resignations during the year[190]. - The company provided training to 85% of its employees, with an average training duration of 6.2 hours per employee[197]. - The company employed a total of 61 employees as of the end of the fiscal year 2021, with a breakdown of 53 males and 8 females[187]. - The company has implemented measures to ensure a safe working environment, adhering to the Occupational Safety and Health Ordinance standards[192]. - The company has not recorded any work-related fatalities during the reviewed year, maintaining a low accident rate[195]. - The company prohibits the use of child labor and forced labor, ensuring compliance with legal working age requirements[185]. - The company offers various types of leave, including annual leave, maternity leave, and examination leave, in accordance with legal requirements[186]. - The company has a diverse workforce, although challenges remain in achieving gender and age diversity within the construction industry[187]. - The company has established a performance evaluation mechanism to ensure employees receive fair assessments in a non-biased environment[197].
汛和集团(01591) - 2021 - 年度财报