Financial Performance - Total revenue decreased by approximately HKD 416.0 million or 48.9% to about HKD 434.6 million for the year ended March 31, 2020, compared to approximately HKD 850.6 million for the previous year[5]. - Loss attributable to equity shareholders decreased by approximately HKD 8.5 million or 44.0% to about HKD 10.8 million for the year ended March 31, 2020, compared to approximately HKD 19.3 million for the previous year[5]. - The number of projects contributing to total revenue decreased from 49 to 46, with total revenue of approximately HKD 434.6 million for the year ended March 31, 2020[6]. - Revenue from private sector projects was approximately HKD 331.4 million, accounting for about 76.2% of total revenue, while public sector projects contributed approximately HKD 103.2 million, accounting for about 23.8%[12]. - The basic loss per share for the year ended March 31, 2020, was approximately HKD 0.72, compared to approximately HKD 1.29 for the previous year[14]. - The company had 17 customers contributing to total revenue of approximately HKD 434.6 million, down from 19 customers in the previous year[15]. - The group's gross profit decreased by approximately HKD 35,079,000 or about 73.6% to approximately HKD 12,606,000 for the year ended March 31, 2020, compared to approximately HKD 47,685,000 for the previous year[22]. - The gross profit margin fell from approximately 5.6% for the year ended March 31, 2019, to approximately 2.9% for the year ended March 31, 2020, primarily due to increased labor costs and competitive contract conditions in the market[22]. - Other income decreased by approximately HKD 1,955,000 or about 81.3% to approximately HKD 449,000 for the year ended March 31, 2020, mainly due to a reduction in rental income[23]. - Administrative expenses decreased by approximately HKD 2,423,000 or about 10.1% to approximately HKD 21,532,000 for the year ended March 31, 2020, attributed to a decline in professional fees and entertainment expenses[25]. Market Challenges - The company faced challenges due to the COVID-19 pandemic and local social events, which led to delays in construction progress[5]. - The company plans to continue expanding its range of construction projects and customer base to mitigate market risks[6]. - The group has experienced significant increases in construction material costs, which may adversely affect financial performance[42]. - The group is exposed to risks related to inaccurate contract pricing estimates and ineffective cost management, which could negatively impact financial results[42]. - The group has faced potential adverse impacts from construction disputes and litigation, which could affect overall performance[42]. Cash and Debt Management - As of March 31, 2020, the group had cash and cash equivalents of approximately HKD 187,521,000, an increase from approximately HKD 181,688,000 as of March 31, 2019[31]. - The capital debt ratio as of March 31, 2020, was approximately 88.2%, down from approximately 95.5% in the previous year[31]. - The group did not have any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended March 31, 2020[34]. - The group maintained a prudent funding and treasury policy, closely monitoring its liquidity position to meet any unexpected funding needs[32]. - The group did not enter into any derivative contracts to hedge foreign exchange risks for the year ended March 31, 2020, as it primarily operates in Hong Kong and transacts in HKD[37]. - The unutilized net proceeds of approximately HKD 25.3 million have been deposited in a licensed bank in Hong Kong[46]. - The group had no bank borrowings as of March 31, 2020[188]. Corporate Governance - The company has maintained high standards of corporate governance to protect shareholder interests and ensure transparency and accountability[66]. - The board confirms compliance with the corporate governance code since the listing date[66]. - The company has adopted the standard code for securities trading for directors and employees to prevent insider trading[67]. - The management team has extensive experience, with the executive director having over 22 years in accounting and secretarial work[62]. - The independent non-executive directors bring a wealth of experience, including over 52 years in structural engineering and legal expertise[58][59]. - The company emphasizes effective internal controls and risk management procedures to manage related risks[66]. - The company has a commitment to developing business strategies and policies that align with corporate governance principles[66]. - The board has confirmed that there have been no incidents of employees violating the securities trading code since the listing[67]. - The company has a diverse board with members holding qualifications in law, engineering, and accounting[59][60]. - The board consists of five executive directors and three independent non-executive directors, ensuring a high level of independence with independent directors making up over one-third of the board[70][71]. - Attendance rates for board meetings were high, with the chairman attending 100% of meetings and other executive directors averaging 66.67%[77]. - The audit committee, established on May 23, 2017, is composed of three independent non-executive directors and is responsible for reviewing financial statements and internal controls[85][87]. - The company has complied with the corporate governance code, ensuring that all independent non-executive directors are independent according to the listing rules[74]. - The company has arranged internal training on listing rules for all directors to enhance their knowledge and skills, ensuring compliance with ongoing professional development requirements[84]. - The board is responsible for setting the overall strategy and approving annual development plans and budgets, reflecting a commitment to effective governance[80]. - The company has established a clear separation of roles between the chairman and the CEO to ensure effective leadership and management[82]. - All independent non-executive directors have signed service contracts for one year, which can be renewed, ensuring stability in governance[74]. - The company has implemented a director and senior management liability insurance policy to protect individual directors' interests[76]. - The board regularly reviews its delegated functions to ensure they meet the group's needs and has assigned specific responsibilities to various board committees[81]. - The Audit Committee held meetings to review the annual financial performance for the year ending March 31, 2020, with all members attending 100% of the meetings[88]. - The Remuneration Committee convened three times during the year to review the remuneration of all executive directors and senior management, with attendance rates of 100% for independent non-executive directors[95][96]. - The Nomination Committee reviewed the independence of independent non-executive directors and assessed the board's structure and diversity policies[102]. - The company adopted a board nomination policy to recommend candidates for election at the annual general meeting[106]. - The selection criteria for potential candidates include integrity, relevant experience, and commitment to the role, among other factors[107]. - The Remuneration Committee's responsibilities include approving management's remuneration proposals based on the company's performance and strategic goals[101]. - The company ensures that no director participates in determining their own remuneration, maintaining governance standards[101]. - The Audit Committee and the Board had no disagreements on significant matters during the reporting period[88]. - The company’s governance practices align with the corporate governance code as per the Stock Exchange's requirements[93]. - The board consists of seven directors, with one female member, reflecting a commitment to diversity[109]. - The company aims to enhance gender balance in board appointments and has set measurable goals for increasing female representation[112]. Environmental and Social Responsibility - The group maintained its commitment to providing high-quality products and services during the reporting period, with a focus on sustainable value creation for shareholders and stakeholders[135]. - The group implemented quality and environmental management systems certified to ISO 9001:2008 and ISO 14001:2004 standards[135]. - Green policies were adopted to reduce energy consumption and increase employee awareness regarding energy use, paper consumption, and greenhouse gas emissions[138]. - The group reported a reduction in nitrogen oxides emissions from 235,994 grams in 2019 to 223,741 grams in 2020, representing a decrease of approximately 5.3%[146]. - Sulfur oxides emissions decreased from 521 grams in 2019 to 481 grams in 2020, a reduction of about 7.7%[146]. - The group’s carbon dioxide emissions from mobile combustion sources decreased from 84,592 kg in 2019 to 78,018 kg in 2020, a decline of approximately 7.8%[147]. - Indirect greenhouse gas emissions increased from 20,881 kg CO2 equivalent in 2019 to 26,410 kg in 2020, an increase of about 26.6%[148]. - The group has not reported any harmful waste generation during the reporting period[145]. - The group has established a certified occupational health and safety management system compliant with OHSAS 18001:2007[135]. - The group maintained effective communication with stakeholders through various channels, including the company website and financial reports[131]. - Direct energy consumption increased to 41,921 kWh in 2020 from 33,144 kWh in 2019, representing a 26.5% increase[151]. - Energy consumption density decreased to 16,769 kWh per location in 2020 from 18,939 kWh in 2019, a reduction of 11.5%[151]. - The company achieved ISO 9001, ISO 14001, and OHSAS 18001 certifications during the reporting period, indicating compliance with quality and safety standards[156]. - There were 9 reported work-related injuries during the reporting period, with no fatal incidents[156]. - The company implemented measures to protect employee health during the COVID-19 pandemic, including providing masks and sanitizers[158]. - The company maintains a zero-tolerance policy towards forced labor and child labor, ensuring compliance with employment laws[153]. - The company actively engages in community support, donating to various charitable organizations during the reporting period[166]. - The company emphasizes the importance of training and development, sponsoring employees for professional training courses[159]. - The company has a comprehensive supply chain management system to ensure the quality of products and services from suppliers[160]. - The company has established a clear code of conduct to prevent corruption and unethical behavior among employees[164]. - The group is committed to corporate social responsibility and has made donations to charitable organizations to alleviate the impact of COVID-19[172]. Shareholder Information - The company did not declare a final dividend for the year ended March 31, 2020[183]. - The company’s main business is investment holding, focusing on template engineering and building construction[177]. - The company’s financial data summary for the past five years is available in the annual report[185]. - The board of directors presented the audited consolidated financial statements for the year ended March 31, 2020[176]. - The company’s directors and CEO hold significant equity interests, with Mr. Leung Chi Kit and Ms. Chao Yu Ching each owning 1,125,000,000 shares, representing approximately 75% of the issued share capital[200]. - The equity interests are categorized as controlled corporation interests and family interests, indicating a strong alignment with company performance[200]. - The total number of shares held by the directors reflects a substantial ownership stake, which may influence corporate governance and strategic decisions[200]. - The disclosure of interests is in compliance with the Securities and Futures Ordinance, ensuring transparency in ownership[200]. - The company maintains a register of interests as required by the Securities and Futures Ordinance, which is accessible for regulatory purposes[200]. - The significant ownership by the directors suggests a commitment to the long-term success of the company and its strategic initiatives[200]. - The combined ownership of 2,250,000,000 shares by the two directors indicates a strong control over company decisions and direction[200]. - The interests disclosed are subject to the standards set forth in the Listing Rules, ensuring adherence to regulatory requirements[200]. - The high percentage of ownership may impact investor confidence and market perception of the company’s stability[200]. - The company’s governance structure is reinforced by the substantial equity held by its leadership, potentially leading to strategic advantages in market positioning[200].
建成控股(01630) - 2020 - 年度财报