Financial Performance - Revenue for the year ended March 31, 2020, decreased by 35% to approximately HK$1,548 million from approximately HK$2,385 million for the year ended March 31, 2019[23]. - Net profit for the year ended March 31, 2020, amounted to approximately HK$24 million, a decrease from approximately HK$141 million in 2019[24]. - Gross profit for the year was HK$156.5 million, down from HK$235.5 million in the previous year, reflecting a decline of 33.5%[11]. - Profit attributable to owners of the parent for the year ended March 31, 2020 was approximately HK$24 million, a decrease of 83% compared to HK$141 million for the previous year[38]. - Basic and diluted earnings per share for the year were HK1.20 cents, down from HK7.07 cents in 2019[38]. - The decline in net profit was mainly due to the suspension of certain site works in February 2020 to prevent the spread of COVID-19 and a one-time loss on derecognition of approximately HK$41 million[39]. - The gross profit margin increased slightly from 9.9% in 2019 to 10.1% in 2020, with fluctuations expected under HKFRS 15[83]. - Other income and gains remained stable at approximately HK$14 million for both years, with interest income increasing to approximately HK$11 million due to higher fixed deposits[91]. Expenses and Costs - Administrative expenses increased to HK$90.3 million from HK$80.8 million, representing a rise of 18.6%[11]. - The company reported finance costs of HK$1.3 million, an increase from HK$0.5 million in the previous year[11]. - Income tax expense for the year was HK$15.6 million, down from HK$29 million in 2019, a decrease of 46.2%[11]. - Other expenses for the year amounted to approximately HK$41 million, representing a one-time loss on derecognition of the building portion of Man Shung[93]. Assets and Equity - Non-current assets decreased to HK$707.9 million from HK$794.9 million, a decline of 10.9%[20]. - Current assets decreased to HK$1,213.3 million from HK$1,250.6 million, a decrease of 3%[20]. - Total equity as of March 31, 2020, was HK$1,254.8 million, down from HK$1,312.6 million, a decline of 4.4%[20]. - The net asset value attributable to owners of the parent as at 31 March 2020 was approximately HK$1,255 million, a decrease of 4% from approximately HK$1,313 million as at 31 March 2019[40]. - The Group's total equity as of 31 March 2020 was approximately HK$1,255 million, a decrease from approximately HK$1,313 million as of 31 March 2019[111]. - The Group's cash and cash equivalents decreased by 31% from approximately HK$897 million as of 31 March 2019 to approximately HK$617 million as of 31 March 2020[113]. Contracts and Projects - The Group's substantial contracts on hand amounted to approximately HK$7,584 million, with outstanding values of approximately HK$6,113 million as of March 31, 2020[62]. - The Group secured a substantial contract valued at approximately HK$2,269 million for public housing development during the year[87]. - Subsequent to the year-end, the Group obtained another significant contract with an estimated value of approximately HK$2,762 million for the development of a logistics center[87]. - The Group is redeveloping the site at No. 7 Lai Yip Street, Kwun Tong, with demolition work in progress following the Town Planning Board's approval for minor relaxation of plot ratio and building height restrictions[45]. Market and Strategic Focus - The company is focusing on expanding its market presence and exploring new business strategies to recover from the decline in revenue[23]. - The Group is focused on seeking different investment opportunities to broaden income sources and enhance project efficiency[57]. - The Group is focused on developing innovative technology to enhance safety, environmental protection, health, quality, and efficiency in project management[52]. - The social unrest and COVID-19 pandemic are expected to lead to a contraction in the private construction sector in the next few years, despite unchanged community needs for housing and hospital facilities[47]. - The HKSAR Government has set aside HK$300 billion for healthcare infrastructure to meet the increasing demand for services due to an ageing population[51]. Management and Governance - The Group's management discusses employee remuneration based on performance, with discretionary bonuses and share options available for senior management[155]. - The Group's strategic planning is overseen by Mr. NGAI, who has over 23 years of experience in the construction industry[160]. - Mr. CHEUNG was appointed as the Chief Executive Officer in February 2020, responsible for business development and corporate governance[163]. - The Company has a strong board with diverse expertise in construction, engineering, and education, enhancing its governance[180]. - The Company emphasizes the importance of project management and contract administration in its operations[171]. Employment and Human Resources - As of March 31, 2020, the Group employed 336 full-time employees, a decrease from 360 employees as of March 31, 2019[155]. - The Option Scheme was adopted to incentivize directors and employees, but no share options were granted under the scheme up to March 31, 2020[156].
安保工程控股(01627) - 2020 - 年度财报