Financial Performance - Revenue decreased by 23.4% from approximately HK$3,112,300,000 for the year ended March 31, 2018, to approximately HK$2,385,400,000 for the year ended March 31, 2019[7]. - Net profit for the year ended March 31, 2019, was approximately HK$141,400,000, compared to HK$175,000,000 for the previous year[7]. - Basic and diluted earnings per share for the year ended March 31, 2019, were HK$0.0707, down from HK$0.0875 in 2018[7]. - Gross profit for the year ended March 31, 2019, was HK$235,527,000, compared to HK$249,292,000 in 2018[6]. - The adoption of HKFRS 15 resulted in a profit decrease of approximately HK$74.4 million for the year[20]. - Profit attributable to owners of the parent for the year was HK$141.4 million, down from HK$175.0 million in the previous year[53]. - The Group's profit for the year was impacted by the adoption of HKFRS 15, leading to a decrease of approximately HK$74.4 million[53]. - The gross profit margin increased from 8.0% for the year ended March 31, 2018 to 9.9% for the year ended March 31, 2019[65]. - Administrative expenses for the year ended March 31, 2019, were HK$80,787,000, compared to HK$44,987,000 in 2018[6]. - Finance costs increased to HK$528,000 for the year ended March 31, 2019 from HK$221,000 in the previous year, attributed to higher Hong Kong Interbank Offered Rate (HIBOR) and increased average bank borrowings[79]. Equity and Assets - Total equity as of March 31, 2019, was HK$1,312,634,000, an increase from HK$1,177,143,000 in 2018[6]. - Current assets as of March 31, 2019, were HK$1,250,598,000, down from HK$1,761,665,000 in 2018[6]. - Non-current assets as of March 31, 2019, were HK$794,862,000, significantly higher than HK$125,801,000 in 2018[6]. - Current liabilities as of March 31, 2019, were HK$732,826,000, compared to HK$710,280,000 in 2018[6]. - The net asset value attributable to owners of the parent as of March 31, 2019, increased by 11.5% to HK$1,312.6 million, from HK$1,177.1 million as of March 31, 2018[23]. Dividends - The Board recommended a final dividend of HK4 cents per ordinary share for the year ended March 31, 2019, down from HK5 cents in 2018[25]. - The total proposed final dividend for the year ended March 31, 2019, is HK$80 million, translating to HK$0.04 per ordinary share[58]. Acquisitions and Investments - The Group completed the acquisition of Man Shung Industrial Building, providing self-owned working space and reducing future rental expenditure risks[28]. - The acquisition of Gold Victory Resources Inc. was completed for HK$60 million, with a guaranteed profit of not less than HK$50 million for the period from 1 December 2018 to 31 March 2022[30]. - The goodwill arising from the acquisition of Gold Victory was approximately HK$45.0 million[30]. - The Group is exploring different investment opportunities to broaden its sources of income in a changing marketplace[38]. - The Group completed the acquisition of properties at Man Shung for a total consideration of HK$438.6 million in the first round, HK$180.0 million in the second round, and HK$30.3 million in the third round[102][103][104]. Government Initiatives and Market Outlook - The Hong Kong government is committed to increasing land supply and public housing units to address housing issues, which may benefit the Group's future projects[32]. - The HKSAR Government has allocated HK$200 billion for a 10-year Hospital Development Plan, with an additional HK$270 billion for 19 projects in the second phase[34][35]. - The medium to long-term outlook for the construction industry in Hong Kong is promising due to government initiatives for public housing[127]. - The HKSAR Government's commitment to increase public housing and healthcare services is expected to positively impact the construction industry in the medium to long term[59]. Operational Challenges - The decrease in revenue was primarily due to the completion of substantial portions of large-scale construction projects, which had contributed significantly to last year's revenue[60]. - The Group is facing challenges from increased construction costs due to inflation in labor and material prices[127]. Management and Governance - The company has a strong leadership team with extensive experience across various sectors of the construction industry[141][144][142][145][148]. - The company is focused on enhancing project management and quality assessment capabilities through its experienced directors[144][142]. - The Board consists of nine Directors, including six Executive Directors and three Independent Non-executive Directors (INEDs)[179]. - The Company complied with the Corporate Governance Code provisions throughout the year ended March 31, 2019[172]. - The Board is responsible for formulating key policy matters and overall strategic plans to enhance shareholders' value[177]. - The INEDs possess high caliber qualifications in engineering, education, and accounting, providing strong support for the Board's responsibilities[187]. - The Company has established a rigorous system of checks and balances to ensure effective corporate governance[170]. - The Board monitors the performance of management and implements an effective framework of internal controls and risk management[177]. Employee and Safety Initiatives - As of March 31, 2019, the Group employed 360 full-time employees, a decrease from 388 employees as of March 31, 2018[132]. - The Group has launched a safety promotion scheme to improve safety standards among staff and site workers[129].
安保工程控股(01627) - 2019 - 年度财报