Financial Performance - The total revenue for the year ended September 30, 2020, was approximately HKD 303.9 million, a decrease of about 6.5% from HKD 325.2 million for the year ended September 30, 2019[8]. - Gross profit increased by approximately 57.9% to HKD 36.0 million for the year ended September 30, 2020, compared to HKD 22.8 million for the previous year[8]. - The net profit for the year ended September 30, 2020, was approximately HKD 10.2 million, a significant recovery from a net loss of HKD 11.1 million for the year ended September 30, 2019[8]. - Total revenue for the year ended September 30, 2020, was approximately HKD 303.9 million, a decrease from HKD 325.2 million for the previous year, primarily due to delays in foundation and site preparation works and lower completion amounts for slope engineering projects[17]. - Cost of sales decreased by approximately HKD 34.5 million or 11.4% to approximately HKD 267.9 million for the year ended September 30, 2020, driven by the corresponding decrease in revenue[18]. - Gross profit increased by approximately HKD 13.2 million or 57.9% to approximately HKD 36.0 million, with the overall gross profit margin rising from 7.0% to 11.9%[19]. - Other income increased by approximately HKD 2.4 million to approximately HKD 5.2 million, mainly due to government subsidies related to epidemic prevention and interest from bank deposits[21]. - Administrative and other operating expenses decreased by approximately HKD 5.0 million or 14.3% to approximately HKD 29.9 million, attributed to reductions in legal and professional fees[22]. - The health management and consulting business improved from a gross loss margin of approximately -46.7% in 2019 to a gross profit margin of approximately 42.6% in 2020, driven by sales of health products in China[20]. Construction Projects - The group had 27 construction projects on hand as of September 30, 2020, with a total contract value of approximately HKD 790.1 million, of which about HKD 447.6 million was recognized as revenue[12]. - The overall outlook for the construction industry remains challenging due to the impact of COVID-19, including project delays and labor shortages[9]. - The group aims to enhance its qualifications and financial resources to prepare for bidding on suitable public sector projects[14]. Strategic Plans and Investments - The company plans to maintain prudent financial management and cost control while seeking favorable business and investment opportunities to drive growth[9]. - The company will continue to invest in human resources and information systems to strengthen operational capabilities and efficiency[14]. - The company has increased capital contributions to its subsidiaries and is in the process of acquiring additional equipment and land for operations[27]. - The company has plans to apply for additional licenses with a budget of HKD 38.8 million, of which HKD 6.0 million has been utilized as of September 30, 2020[31]. - The group has identified a remaining balance of HKD 32.8 million for future use of the net proceeds from the listing, expected to be utilized by September 30, 2021[31]. Leadership and Management - Liu Zhi Hong, the chairman and executive director, has over 50 years of experience in civil engineering and has held various significant positions in the industry[54]. - Liu Zhi Ming, the vice chairman and executive director, has approximately 40 years of engineering experience and has been involved in various engineering roles since 1981[56]. - Liu Zhi Qiang, the CEO and executive director, has over 40 years of engineering experience and has served as a guest professor at multiple universities[60]. - The company has a strong leadership team with extensive qualifications, including registered professional engineers and chartered engineers in various fields[61]. - The management team is committed to business development and operational oversight, ensuring strategic growth and market expansion[59]. - The company emphasizes corporate governance and policy development under the supervision of its chairman[54]. Corporate Governance - The company has adopted the corporate governance code as per the Listing Rules and has fully complied with it for the year ending September 30, 2020[82]. - The board consists of a majority of independent non-executive directors, exceeding the requirement of at least one-third as per the Listing Rules[88]. - The company has purchased liability insurance for its directors and senior management to cover any legal liabilities arising from their duties[85]. - The company’s board is responsible for overseeing all significant matters, including strategy formulation and financial performance monitoring[84]. - The independent non-executive directors provide impartial opinions on strategic and performance issues, ensuring the interests of all shareholders are considered[89]. - The company has implemented a system for regular reporting from executive directors to the board regarding their work and business decisions[86]. - The company has established a risk management and internal control system to safeguard shareholder investments and group assets, with annual reviews conducted by the board[132]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a dedicated team to handle ESG matters and monitor progress towards corporate goals and climate change objectives[154]. - The company aims to create sustainable value for stakeholders while significantly reducing its environmental impact[154]. - The ESG report is prepared in accordance with the Hong Kong Stock Exchange's guidelines, enhancing transparency and accountability[149]. - Total greenhouse gas emissions decreased from 87.69 tons in 2019 to 73.41 tons in 2020, representing a reduction of approximately 16.3%[169]. - The company has implemented ISO9001 quality management system to monitor and reduce environmental impacts[185]. - The company has established measures to minimize NOx, SOx, and PM emissions, including training employees on eco-friendly practices[161]. Employee Management - The total number of employees as of September 30, 2020, is 85, with 37 in Hong Kong and 48 in China[196]. - The company has implemented a comprehensive human resources management policy to ensure fair treatment of all employees, regardless of gender, age, or nationality[190]. - The company aims to create a harmonious labor relationship and promote a positive work environment through various employee activities[190]. - The employee gender ratio is approximately 2.3:1, with 59 male employees and 26 female employees, maintaining the same ratio as the previous year[196]. - The company continues to review and adjust its compensation and benefits to attract and retain talent[190].
成志控股(01741) - 2020 - 年度财报