Financial Performance - The Group recorded a consolidated revenue of approximately HK$1,056.5 million, representing an increase of 7.8% from the previous year[12]. - Gross Profit amounted to HK$120.6 million, an increase of 10.0% compared to the previous year[12]. - Profit attributable to owners of the Company was HK$49.3 million, reflecting a significant increase of 100.6% from the previous year[12]. - Earnings per share for the 2021 Financial Year was HK$0.10, up from HK$0.05 in the previous year[12]. - Other income and gain for the 2021 Financial Year amounted to HK$46.1 million, compared to HK$45.8 million for the 2020 Corresponding Year, with subsidies from the PRC and Hong Kong Government contributing approximately HK$27.2 million[37]. - Selling and distribution expenses increased to HK$25.5 million in 2021 from HK$21.2 million in 2020, primarily due to higher wages, transportation fees, and storage expenses related to diversifying emerging channels[37]. - Administrative and other expenses decreased to HK$105.0 million in 2021 from HK$110.4 million in 2020, mainly due to reduced corporate expenses from global lockdowns caused by COVID-19[37]. - Finance costs rose to approximately HK$10.2 million in 2021 from approximately HK$7.6 million in 2020, attributed to an increase in average interest rates on bank and other borrowings[37]. - Income tax expenses increased by approximately HK$0.4 million from approximately HK$6.2 million in 2020 to approximately HK$6.6 million in 2021, resulting from an increase in operating profit[41]. - The consolidated profit attributable to the owners of the Company for the 2021 Financial Year was approximately HK$49.3 million, representing an increase of 100.6% compared to HK$24.6 million in the 2020 Corresponding Year[44]. Business Operations - The Group was awarded 12 contracts with original contract sums totaling HK$553.8 million, with an outstanding contract value of approximately HK$586.2 million as of March 31, 2021[13]. - The construction industry in Hong Kong is less affected by the current economic environment, supported by the government's expansionary fiscal measures[14]. - The Group is cautiously optimistic about the construction market in the medium to long term due to ongoing infrastructure investments[14]. - The Group has diversified its business into sub-leasing by entering cooperation agreements for premises in Guangzhou[10]. - The Birmingham Property Project has seen 74.3% of its 304 residential apartments sold, contributing approximately HK$19.0 million to profits[10]. - Revenue from the foundation and other civil works segment increased by approximately 10.0% from HK$699.3 million in 2020 to HK$769.4 million in 2021[27]. - Revenue from the tunneling works segment amounted to approximately HK$94.5 million, representing an increase of approximately 13.2% from the previous year[27]. - The Group's principal activities include foundation and civil works, tunneling works in Hong Kong and overseas, and R&D, breeding, and trading of aquatic products in the PRC[178]. Financial Position - The Group maintained a healthy financial position with net current assets of HK$131.8 million and a net cash position at the financial year end[12]. - As of March 31, 2021, the Group had bank balances and cash of approximately HK$71.1 million, an increase from HK$31.1 million as of March 31, 2020[44]. - The Group's current ratio as of March 31, 2021 was approximately 1.4 times, compared to 1.3 times as of March 31, 2020[44]. - The gearing ratio as of March 31, 2021 was approximately 65.9%, up from 53.1% as of March 31, 2020[44]. - Capital expenditure for the Group was HK$40.7 million in the 2021 Financial Year, down from HK$64.5 million in the 2020 Corresponding Year[44]. Risk Factors - The Group's financial performance is subject to risks related to price fluctuations of construction materials and the availability of quality materials meeting required standards[183]. - The construction business is inherently subject to claims and disputes regarding work quality, timely completion, and labor compensation, which can adversely affect the Group's reputation and financial results[184]. - The Group's operations are affected by unforeseen ground conditions, which may lead to cost overruns if customers do not agree to compensate for additional costs incurred[186]. - The Group must comply with environmental regulations in jurisdictions such as Hong Kong, the PRC, and the Philippines, and any changes in these regulations may negatively impact operations and financial results[186]. - The outbreak of COVID-19 or other natural disasters may severely restrict economic activity in Hong Kong and China, potentially having a material adverse effect on the Group's business and financial results[195]. Corporate Governance - The Company has adopted the CG code under Appendix 14 to the Listing Rules and complied with it during the 2021 Financial Year[53]. - The Board comprises eight members, including five Executive Directors and three Independent Non-executive Directors as of March 31, 2021[59]. - The Board has established the Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of the Company's affairs[72]. - The Chairman and Chief Executive Officer roles are segregated, with Mr. Jim Yin Kwan Jackin as Chairman and Mr. Yan Chi Tat as CEO[62]. - The Company has arranged Directors and Officers Liability Insurance for legal actions against Directors and management[61]. - The Board is responsible for formulating group policies and monitoring internal controls and performances[63]. - The Company Secretary ensures compliance with corporate governance and board procedures, having taken relevant professional training[138]. Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[142]. - All board members and external auditors attended the 2020 AGM to address shareholder questions, with resolutions approved by poll voting[143]. - The company maintains a website for posting announcements, financial information, and other relevant data for shareholders and investors[144]. - Shareholders holding at least 10% of the paid-up capital can requisition an extraordinary general meeting within two months of deposit[145]. - Shareholders can send inquiries to the board via post or email, and the board will respond as soon as possible[148]. Management and Leadership - The Group's management team includes professionals with advanced degrees in engineering and business, enhancing its strategic capabilities[153]. - The Group's leadership includes founders with extensive industry experience, ensuring continuity and expertise in strategic decision-making[150]. - The Group's Chief Financial Officer, Mr. Chong, also serves as company secretary for China Partytime Culture Holdings Limited, listed on the Stock Exchange since May 2015[173]. - The management team is committed to maintaining high standards in project management and operational oversight[173]. - The Group's leadership includes individuals with significant experience in both local and international markets, supporting strategic growth initiatives[173].
义合控股(01662) - 2021 - 年度财报