Financial Performance - Total revenue increased by approximately HKD 89.3 million or 20.5% to approximately HKD 523.9 million for the year ended March 31, 2021, compared to approximately HKD 434.6 million for the previous year[5]. - Gross profit decreased by approximately HKD 8.3 million or 66.0% to approximately HKD 4.3 million due to rising material costs and supply shortages[5]. - Profit attributable to equity shareholders increased by approximately HKD 13.4 million or 124.1% to approximately HKD 2.6 million, compared to a loss of approximately HKD 10.8 million in the previous year[5]. - Basic earnings per share for the year ended March 31, 2021, were approximately HKD 0.18, compared to a loss per share of approximately HKD 0.72 in the previous year[15]. - The net profit attributable to equity shareholders was approximately HKD 2,631,000 for the year ended March 31, 2021, compared to a loss of approximately HKD 10,831,000 for the year ended March 31, 2020[34]. - The group's gross profit decreased from approximately HKD 12,606,000 in the year ended March 31, 2020, to approximately HKD 4,283,000 in the year ended March 31, 2021, representing a decline of about 66.0%[28]. - The gross profit margin fell from approximately 2.9% in the year ended March 31, 2020, to approximately 0.8% in the year ended March 31, 2021, primarily due to rising timber costs and increased project costs[28]. - Other income increased significantly from approximately HKD 449,000 in the year ended March 31, 2020, to approximately HKD 23,757,000 in the year ended March 31, 2021, marking a growth of about 5,191.1%[29]. Project and Revenue Sources - The number of projects contributing to revenue decreased from 46 to 42, with five large template projects at peak construction contributing significantly to revenue growth[21]. - Private sector projects generated approximately HKD 452.2 million, accounting for about 86.3% of total revenue, while public sector projects contributed approximately HKD 71.7 million, or 13.7%[13]. - The company had 14 customers contributing to total revenue of approximately HKD 523.9 million, down from 17 customers in the previous year[16]. - The company will focus on diversifying its project types to include public housing construction in addition to private sector projects[13]. Challenges and Strategic Plans - The company faced challenges due to COVID-19, which affected the business environment and led to material supply shortages, increasing costs and project delays[6]. - The company plans to continue expanding its range of construction projects and customer base to mitigate market risks[7]. Financial Position and Expenses - As of March 31, 2021, the group had cash and cash equivalents of approximately HKD 186,621,000, slightly down from approximately HKD 187,521,000 as of March 31, 2020[37]. - The capital debt ratio as of March 31, 2021, was approximately 86.6%, a slight improvement from 88.2% as of March 31, 2020[37]. - Administrative expenses decreased from approximately HKD 21,532,000 in the year ended March 31, 2020, to approximately HKD 21,355,000 in the year ended March 31, 2021, a reduction of about 0.8%[31]. - Financing costs increased from approximately HKD 2,730,000 in the year ended March 31, 2020, to approximately HKD 2,796,000 in the year ended March 31, 2021, an increase of about 2.4%[32]. - The total salary cost for the year ended March 31, 2021, was approximately HKD 194,334,000, compared to HKD 164,543,000 for the year ended March 31, 2020, representing an increase of about 18%[52]. Corporate Governance - The company has maintained high standards of corporate governance to protect shareholder interests and ensure transparency and accountability[75]. - The board confirms compliance with the corporate governance code since the listing date on June 16, 2017, up to the report date[75]. - 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[79][80]. - All independent non-executive directors have confirmed their independence according to the listing rules, with no significant financial or familial relationships among board members, except for one[82]. - The board has held regular meetings, with attendance rates for the fiscal year ending March 31, 2021, showing 100% attendance by all executive directors at shareholder meetings[85]. - The audit committee, established on May 23, 2017, is composed of three independent non-executive directors, ensuring compliance with corporate governance standards[94]. - The company has implemented a continuous professional development plan for all directors, ensuring they stay updated on relevant regulations and governance practices[91]. - The board is responsible for overseeing the group's overall strategy, approving annual development plans and budgets, and monitoring financial and operational performance[88][89]. - The roles of the chairman and the CEO are clearly separated, with Mr. Liang Zhi Jie serving as chairman and Mr. Zhou Di Jiang as CEO, ensuring distinct responsibilities[90]. - The company has established a service contract for independent non-executive directors, which is renewable annually unless terminated with a one-month notice[82]. - The board has authorized management to handle daily operations while retaining oversight responsibilities for significant decisions[89]. - The company has arranged liability insurance for its directors and senior management to protect their interests[84]. ESG and Environmental Practices - The report period covers from April 1, 2020, to March 31, 2021, detailing the company's ESG activities, challenges faced, and measures taken[138]. - The company adheres to the ESG reporting guidelines set by the Hong Kong Stock Exchange, focusing on importance, quantification, and consistency in reporting[141]. - The company aims to strengthen communication and collaboration with stakeholders through the publication of the ESG report, promoting sustainable development[143]. - The total greenhouse gas emissions for the reporting year amounted to approximately 145,213 kg CO2 equivalent, an increase from 104,428 kg CO2 equivalent in the previous year, representing a 39% rise[158]. - Direct greenhouse gas emissions (Scope 1) were reported at 126,376 kg CO2 equivalent, up from 78,018 kg CO2 equivalent, indicating a 62% increase year-over-year[158]. - Nitrogen oxides emissions increased to 431,129 grams from 223,741 grams, reflecting a 93% increase[154]. - The company implemented a "green policy" aimed at reducing energy consumption and enhancing environmental awareness among employees[153]. - The company did not report any hazardous waste generation during its operations, adhering to environmental regulations[162]. - The company has adopted aluminum alloy reusable templates in construction projects to minimize the use of traditional wooden templates, promoting recycling[161]. - The total indirect greenhouse gas emissions (Scope 2) decreased to 18,714 kg CO2 equivalent from 26,410 kg CO2 equivalent, showing a 29% reduction[158]. - The company has established guidelines for the management and disposal of hazardous waste, despite not generating any during its operations[162]. - The company has engaged qualified waste management contractors to ensure compliance with waste disposal regulations[161]. - The company reported no non-compliance with environmental laws and regulations during the reporting period[153]. - Total energy consumption for the reporting period was approximately 562,981 kWh, with direct energy consumption at 512,402 kWh and indirect energy consumption at 50,579 kWh[167][168]. - The company implemented energy-saving measures, including using energy-efficient equipment and turning off unnecessary lighting and appliances when not in use[169]. - Water usage during the reporting period was 294.3 cubic meters, with a water usage density of 147.2 cubic meters per location[170]. Employee and Safety Management - The company reported 12 fatal injury incidents on project sites during the reporting period, with no reported workdays lost due to injuries[180]. - The company has established a safety management system to mitigate safety risks to acceptable levels, with regular audits conducted by registered safety auditors[178]. - The company has taken measures to ensure employee health during the COVID-19 pandemic, safeguarding both employees and the surrounding community[181]. - The company reported no significant non-compliance with employment laws and regulations during the reporting period[186]. - The company maintains a zero-tolerance policy towards forced labor and child labor, ensuring all employees meet legal age and identification requirements[185]. - The company emphasizes the importance of quality suppliers and subcontractors, requiring proof of sustainable sourcing for materials like timber[187]. Corporate Social Responsibility - The company has made charitable donations totaling HKD 46,000 to various organizations during the reporting period[192]. - The company aims to enhance its corporate social responsibility by increasing awareness of environmental protection among employees and subcontractors[191]. - The company has not reported any major breaches of anti-bribery laws or related regulations during the reporting period[190]. Business Focus and Dividends - The company’s primary business focus is on providing formwork and building construction services[194]. - The company did not declare a final dividend for the year ending March 31, 2021[200].
建成控股(01630) - 2021 - 年度财报