Financial Performance - The Group recorded a revenue increase of approximately HK$139.2 million, or 24.5%, from HK$568.4 million in FY2020 to HK$707.6 million in FY2021[12]. - The profit for the Year was approximately HK$44.1 million, representing a 69.6% increase from HK$26.0 million in FY2020[13]. - Revenue from MVAC system projects contributed 81.1% of total revenue, while low voltage electrical system projects contributed 18.9%[12]. - The Group was awarded 13 MVAC system installation projects with a total contract sum of approximately HK$945.4 million during the Year[15]. - The Group was awarded 3 low voltage electrical system projects with a total contract sum of approximately HK$489.0 million, maintaining around 20% contribution to total revenue[22]. - Revenue increased by approximately HK$139.2 million, or 24.5%, from approximately HK$568.4 million for FY2020 to approximately HK$707.6 million for FY2021[34]. - The Group was awarded 16 projects in FY2021 with an aggregate contract sum of approximately HK$1,434.4 million, including 3 projects related to electrical system installation totaling approximately HK$489.0 million[35]. - The five largest projects awarded in FY2021 included an electrical system installation for a residential development at Sham Shui Po with a contract sum of HK$294.2 million[38]. - Profit attributable to owners of the Company increased by approximately HK$18.1 million, or approximately 69.6%, from approximately HK$26.0 million for FY2020 to approximately HK$44.1 million for FY2021[60]. Dividends and Shareholder Returns - The Board recommended a final dividend of HK3.9 cents per ordinary share for the Year, up from HK1.7 cents in the previous year[14]. Market Outlook and Industry Challenges - The outlook indicates opportunities arising from government infrastructure investments and initiatives like the "Land Sharing Pilot Scheme" and "Construction 2.0"[24]. - The construction and E&M engineering services industry faces challenges such as elevated competition and raw material price increases, but the demand is expected to rise due to government projects[23]. - The Hong Kong government’s infrastructure investment plans are expected to increase demand for construction and E&M engineering services in the coming years[26]. Business Strategy and Technology Adoption - The Group's business plan aims to steadily increase revenue and profit from low voltage electrical system projects[22]. - Advanced technologies like Building Information Modelling (BIM) and Modular Integrated Construction (MiC) are being promoted to improve industry productivity[24]. - Advanced technologies such as BIM and MiC are being adopted to enhance productivity in the construction industry[26]. - The Group aims to maintain stable revenue and earnings while diversifying projects and adopting a more competitive pricing strategy[28]. Financial Position and Ratios - As of March 31, 2021, the Group held cash and cash equivalents of approximately HK$236.0 million, an increase from approximately HK$139.4 million in 2020[63]. - The current ratio of the Group as of March 31, 2021, was approximately 2.1 times, down from 2.8 times in 2020[64]. - As of March 31, 2021, the Group had net current assets of approximately HK$232.2 million, an increase from HK$217.9 million in 2020, primarily due to net profit generated from operations[80]. - The Group's capital expenditures for FY2021 amounted to approximately HK$0.2 million, a decrease from HK$1.4 million in 2020, mainly for the purchase of property and equipment[82]. - Performance guarantees provided by banks in favor of the Group's customers amounted to approximately HK$155.4 million as of March 31, 2021, up from HK$121.8 million in 2020[84]. - The Group had no bank borrowings as of March 31, 2021, compared to HK$6.8 million in 2020[79]. - The Group's capital commitments related to the acquisition of property and equipment were approximately HK$0.1 million as of March 31, 2021, down from HK$0.2 million in 2020[99]. - The Group's leasehold land and buildings pledged with a bank amounted to approximately HK$18.5 million as of March 31, 2021, compared to HK$19.2 million in 2020[92]. - The Group's capital debt ratio was approximately 2.6% as of March 31, 2020, calculated based on bank borrowings divided by total equity[79]. Employee and Training Initiatives - The total number of employees increased to 191 as of March 31, 2021, from 146 in 2020[94]. - A wide spectrum of training activities is implemented for employee development, including induction programs to familiarize new employees with the Group's structure and policies[176]. - The Group provided extensive training programs for employees, including Building Information Modeling and building energy efficiency training, to enhance their skills and regulatory awareness[180]. - Employees participated in various training courses during the Year, focusing on both technical and general aspects, to support their professional growth[180]. Environmental, Social, and Governance (ESG) Initiatives - The ESG working group is responsible for collecting and analyzing internal ESG data and preparing the ESG report, ensuring compliance with relevant laws and regulations[114][116]. - A materiality assessment was conducted to identify relevant ESG issues, with key issues including air and greenhouse gas emissions, waste management, energy consumption and efficiency, and noise control[120][121]. - The Group's governance framework aligns ESG governance with strategic development, involving the Board and an ESG working group composed of senior management[111]. - Stakeholder engagement is prioritized, with communication channels established for shareholders, employees, customers, suppliers, and the community to gather feedback on ESG issues[115][118]. - The Audit Committee oversees risk management and internal control systems, ensuring that ESG risks are adequately covered and reviewed annually[109][111]. - The Group's vision focuses on sustainable business development and creating value for the environment, community, and stakeholders[111]. - Compliance with new regulatory obligations is monitored by the ESG working group, which communicates necessary actions to relevant departments[114][116]. - Key material ESG issues have been validated and linked to respective aspects and key performance indicators of the ESG Guide[122]. - The Group's commitment to social aspects includes equal opportunities, occupational health and safety, and community investment through charity support[124]. Environmental Management and Compliance - Total indirect GHG emissions for FY2021 were 72.1 tonnes CO2e, a slight decrease from 72.4 tonnes in FY2020, with emissions intensity remaining stable at 0.0038 tonnes CO2e per square foot[130][134]. - During FY2021, the Group consumed 7.2 tonnes of paper, an increase from 6.4 tonnes in FY2020, while recycling efforts resulted in 0.8 tonnes of paper recycled, down from 1.8 tonnes[139]. - The Group has implemented various energy-saving initiatives, including the use of energy-efficient appliances in offices, to manage GHG emissions[130][138]. - The Group has not identified any material non-compliance with environment-related laws and regulations in Hong Kong during the year[127]. - Stringent controls are in place for potential hazardous waste generated by subcontractors, requiring compliance with the Waste Disposal Ordinance[140]. - The Group promotes the use of environmentally friendly refrigerants and avoids ozone-depleting substances in its projects[132]. - The Group has established guidelines for subcontractors to ensure proper waste management and disposal practices[140]. - The Group's commitment to environmental management is guided by the ISO 14001:2015 and OHSAS 18001:2007 standards[130][134]. - The Group has cooperated with employees and contractors to enhance awareness of environmental protection, focusing on key areas such as GHG emissions and energy efficiency[130][134]. - The Group encourages subcontractors to use low-sulfur diesel for vehicles and conduct regular inspections to meet emission levels stipulated by law[131]. - The Group consumed 111,947 kWh of electricity in FY2021, an increase from 100,444 kWh in FY2020, reflecting business growth and increased staff numbers[144]. - The electricity consumption intensity was 5.9 kWh per square foot of office area in FY2021, up from 5.3 kWh per square foot in FY2020[147]. - The Group implemented energy-saving initiatives, including using energy-efficient appliances and encouraging employees to adopt energy-saving behaviors[148]. - The Group recycled 0.8 tons of paper in FY2021, down from 1.8 tons in FY2020, as part of its waste reduction efforts[142]. - The Group initiated a "Collection of Recycle Paper Program" to promote paper sorting and recycling in Southeast Asia[142]. - The Group established an ISO 14001:2015 accredited environmental management system to enhance environmental stewardship[153]. - The Group's energy-saving products include variable speed motors and water-cooled heat rejection systems, aimed at promoting sustainability among clients[145]. - The Group's noise control measures include using government-approved noise emission equipment and conducting regular noise tests[150]. - The Group's environmental assessments identify potential risks in workplaces and subcontractor production sites to ensure compliance with environmental commitments[155]. - The Group supports the government's environmental protection scheme on Waste Electrical and Electronic Equipment (WEEE) through proper disposal campaigns[143]. Compliance and Ethical Standards - The Group adheres strictly to the Sex Discrimination Ordinance, Disability Discrimination Ordinance, and Family Status Discrimination Ordinance in Hong Kong, with no material non-compliance cases reported during the year[159]. - The Group has established a structured recruitment and termination process to ensure fairness, with all applicants undergoing formal assessments[163]. - Employee remuneration is determined based on market levels, Group profitability, regulatory requirements, and individual performance, ensuring compliance with the Minimum Wage Ordinance and Employment Ordinance[164]. - Employees are entitled to adequate annual leave, sickness allowance, maternity and paternity leave, and rest days, promoting work-life balance[165]. - The Group has implemented a comprehensive occupational health and safety management system, accredited with OHSAS 18001:2007 certification, to ensure the safety of employees and subcontractors[169]. - Safety risk assessments are conducted before project commencement, with a dedicated safety team assigned to implement safeguards[170]. - Regular safety training is organized for employees to enhance awareness and response to emergency situations[171]. - The Group complies with statutory requirements on occupational health and safety, with no material non-compliance cases reported during the year[175]. - The Group emphasizes compliance with labor laws, reporting no cases of material noncompliance with child labor and forced labor-related laws in Hong Kong during the Year[183]. - A quality management system (QMS) has been established, accredited with ISO 9001:2015 certification, to ensure effective and reliable services[190]. - The Group has not been aware of any material non-compliance regarding service quality and data privacy-related laws in Hong Kong during the Year[193]. - An internal control system has been implemented to prevent fraud and corruption, with regular evaluations by independent advisers[194]. - The Group established a whistle-blowing mechanism to provide a confidential channel for reporting fraudulent and unethical acts[195]. - Employees are required to report any perceived or actual conflicts of interest to management to mitigate bribery risks[196]. - The Group maintained a focus on environmentally and socially responsible supply chain partners, conducting regular evaluations and inspections[185]. - There were no reported cases of material noncompliance with corruption-related laws in Hong Kong during the Year[197]. - The Group is committed to corporate social responsibility through donations, sponsorships, and voluntary commitments[198]. - Despite the challenges posed by the Covid-19 pandemic, the Group continued to participate in community events to support local initiatives[199]. - The Group appointed an employee as a speaker at a local university to share professional experiences and insights[199]. - An employee was designated as an industrial tutor at a local university to provide advice and recommendations to students[199]. - No serious violations of Hong Kong's service quality and data privacy laws were reported during the year[200].
顺兴集团控股(01637) - 2021 - 年度财报