Financial Performance - The Group recorded consolidated revenue of approximately HK$600.3 million, representing an increase of 11.3% from the previous year[14]. - Gross profit amounted to HK$116.3 million, an increase of 34.4% compared to the previous year[14]. - Profit attributable to owners of the Company was HK$41.1 million, reflecting a 36.1% increase from the previous year[14]. - Earnings per share were HK$0.08 for the 2019 Financial Year, up from HK$0.06 in the previous year[14]. - The Group's revenue for the 2019 Financial Year increased to approximately HK$600.3 million, representing an 11.3% increase from HK$539.3 million in the previous year[33]. - Revenue from foundation and other civil works increased by HK$50.7 million, an increase of 11.2%, while tunneling works revenue rose by HK$1.7 million, a 2.0% increase[33]. - The consolidated profit attributable to the owners of the Company for the 2019 Financial Year was approximately HK$41.1 million, representing an increase of 36.2% compared to approximately HK$30.2 million for the 2018 Corresponding Year[60]. - The Group incurred capital expenditure of HK$36.0 million for the 2019 Financial Year, a significant increase from HK$9.8 million in the 2018 Corresponding Year[62]. - Income tax expenses increased by approximately HK$4.7 million to approximately HK$10.5 million for the 2019 Financial Year, due to an increase in operating profit[60]. Contracts and Projects - The Group successfully secured 14 contracts with original contract sums totaling HK$574.2 million, with an outstanding contract value of approximately HK$1,011.3 million as of March 31, 2019[15]. - The Birmingham Property Project consists of 304 residential apartments, with about 41.8% pre-sold, expected to be completed by 2020[12]. - The Group was awarded 14 contracts with an original contract sum of approximately HK$574.2 million, all for foundation works in Hong Kong[34]. - As of March 31, 2019, the Group had 21 major contracts on hand with an outstanding contract value of approximately HK$1,011.3 million[34]. - The Group has diversified its operations into the Philippines for site foundation works and is seeking direct cooperation with mining companies[11]. Financial Position - The Group maintained a healthy financial position with net current assets of HK$134.9 million and a net cash position at the financial year end[14]. - As of 31 March 2019, the Group had bank balances and cash of approximately HK$73.2 million, up from approximately HK$46.2 million as of 31 March 2018[62]. - The Group's current ratio decreased to approximately 1.5 times as of 31 March 2019, down from 2.8 times as of 31 March 2018[62]. - The Group's net current assets as of 31 March 2019 were approximately HK$134.9 million, a decrease from approximately HK$179.2 million as of 31 March 2018[62]. - The gearing ratio as of 31 March 2019 was approximately 14.2%, compared to 6.8% as of 31 March 2018[62]. Safety and Compliance - The Group maintained accident rates at construction sites lower than the industry average, reflecting its commitment to safety[46]. - The Group received multiple awards for site safety and health practices during the 2019 Financial Year, recognizing its efforts in maintaining high safety standards[46]. - The Group has implemented management and quality assurance standards in accordance with ISO 9001, ISO 14001, and ISO 50001[156]. - The Group has engaged external consultants for annual reviews of its internal control and risk management systems[154]. - The Board considers that proper internal control and risk management systems are effectively implemented[155]. Corporate Governance - The Group's management is committed to enhancing corporate governance practices to improve accountability and transparency[86]. - The Board of Directors confirmed compliance with the Model Code for securities transactions during the 2019 Financial Year[89]. - The Company has arranged Directors and Officers Liability Insurance to cover legal actions against Directors and management in relation to their duties[92]. - The roles of the Chairman and the Chief Executive Officer are segregated, with Mr. Jim Yin Kwan Jackin as Chairman and Mr. Yan Chi Tat as Chief Executive Officer[94]. - The Audit Committee consists of three Independent Non-executive Directors, with Mr. Lee Luk Shiu as the Chairman, and has held three meetings during the reporting period[102][105]. Employee and Management - The Group's employee remuneration expense and Directors' emoluments amounted to approximately HK$165.3 million for the 2019 Financial Year, an increase from HK$130.2 million in the 2018 Corresponding Year[75]. - As of 31 March 2019, the Group employed 403 employees in Hong Kong, 71 in the Philippines, and 162 in Shenzhen, showing significant growth in workforce compared to the previous year[75]. - The executive directors have extensive experience in the engineering and construction industry, with Mr. Jim Yin Kwan Jackin having over 30 years[179][180]. - The management team includes members with advanced degrees in engineering and business, ensuring a high level of expertise in strategic decision-making[185][188][196]. Shareholder Relations - The Group emphasizes effective communication with shareholders to enhance investor relations and transparency[166]. - All resolutions proposed at the 2018 AGM were approved by poll, with results published on the Stock Exchange and Company websites[167]. - Shareholders holding at least 10% of the paid-up capital can requisition an extraordinary general meeting[169]. - Shareholders can send inquiries to the Board via the head office or email[173]. Strategic Direction - The Group aims to maintain its foundation and tunneling business as its core operations while diversifying its business spectrum and broadening its revenue base[40]. - The Group's management will continue to strengthen its position in the industry by increasing management staff and improving operational efficiency[83]. - The planned use of net proceeds included expanding capacity in foundation and tunneling businesses, with HK$62.8 million and HK$30.3 million allocated respectively[83].
义合控股(01662) - 2019 - 年度财报