Financial Performance - The total revenue for the fiscal year ended March 31, 2021, was approximately HKD 278.2 million, a decrease of about 33.8% compared to the previous fiscal year[9]. - The loss attributable to equity holders for the fiscal year was approximately HKD 32.5 million, primarily due to unexpected additional costs from project delays caused by the COVID-19 pandemic[9]. - The company's revenue decreased by approximately HKD 142.1 million or 33.8% to about HKD 278.2 million for the fiscal year 2021, compared to HKD 420.3 million in fiscal year 2020[15]. - The gross loss for the company was approximately HKD 28.1 million, a decrease of about HKD 39.5 million from a gross profit of HKD 11.4 million in fiscal year 2020[20]. - The company's net loss attributable to equity holders increased by approximately HKD 24.5 million to about HKD 32.5 million, compared to HKD 8.0 million in fiscal year 2020[26]. - The company's cash and bank balances totaled approximately HKD 26.6 million as of March 31, 2021, down from HKD 28.3 million in fiscal year 2020[27]. - The debt-to-equity ratio increased from approximately 29.3% to about 35.3% due to the net loss incurred during the fiscal year[27]. Market Conditions - The actual GDP growth for Hong Kong in the first quarter of 2021 was 7.8%, marking the highest growth rate in a decade and ending six consecutive quarters of decline[9]. - The construction industry in Hong Kong is expected to benefit from a series of promising infrastructure projects driven by government investment and demand for residential and commercial properties[9]. - The overall economic situation in Hong Kong showed signs of recovery starting from the second half of 2020, which is expected to stabilize the construction industry[11]. - The government plans to invest over HKD 100 billion annually in public construction projects, which is expected to support the recovery of the renovation market[18]. Competition and Strategy - The company anticipates continued intense competition in the renovation engineering market, which may persist in the future[11]. - The company plans to enhance its competitiveness by securing more projects and improving cost efficiency in the upcoming year[11]. - The company aims to capture favorable business opportunities and enhance competitiveness in the renovation industry as the market stabilizes[18]. - The company aims to remain vigilant regarding operational performance by taking on more projects and enhancing cost-effectiveness[11]. Operational Challenges - The rising prices of raw materials and the aging labor force in the industry are expected to continue impacting the company in the next year[11]. - The Hong Kong Construction Academy is expected to alleviate the aging labor force issue by offering new full-time and part-time construction courses starting from the 2021/22 academic year[11]. - The company faces significant industry risks due to competition from established firms with more resources and better client relationships, which could lead to downward pricing pressure and affect profit margins[30]. - Compliance risks are present as the company must adhere to various legal regulations and government policies, which could increase costs and impact financial performance if not managed properly[31]. - The company relies on subcontractors for timely project delivery, and any failure in their performance could adversely affect service quality and project completion timelines[32]. - The company’s revenue is primarily derived from non-recurring projects, and there is no guarantee of securing new business due to the impact of COVID-19 on client invitations for bids[33]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the listing rules[69]. - The board of directors confirmed compliance with the standard code of conduct for securities trading during the review period[70]. - The company is committed to maintaining good corporate governance to protect shareholder interests and ensure accountability[69]. - The independent non-executive directors are responsible for providing independent judgment on the group's strategy and performance[63]. - The company has established a remuneration committee and an audit committee to oversee management[63]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced composition for effective independent judgment[71]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in board member selection[73]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental, social, and governance (ESG) issues, particularly in relation to pollution and resource use from its renovation business[120]. - A comprehensive internal materiality assessment was conducted to identify and prioritize ESG issues impacting the company and its stakeholders[120]. - The company has maintained compliance with all relevant environmental laws and regulations during the review period[126]. - The company has implemented internal guidelines to minimize resource consumption and promote environmental protection[164]. - The company aims to balance business achievements with energy efficiency to further reduce emissions in the future[125]. Employee and Labor Relations - The total employee turnover rate for the year was approximately 36%[136]. - The company employed 73 employees at the beginning of the year, which decreased to 55 by year-end[132]. - The number of new hires during the year was 5, while 23 employees resigned[132]. - The employee distribution by gender showed 39 males and 16 females as of March 31, 2021[132]. - The company recorded 1 work-related injury during the year, with no fatalities reported[140]. - The average training hours per employee were 1.6 for males and 1.5 for females[142]. Shareholder and Financial Policies - The company did not declare any annual dividends for the review year, consistent with the previous fiscal year[46]. - The board of directors decided not to recommend a final dividend for the year under review, consistent with the previous fiscal year[158]. - The company has a shareholder communication policy to ensure timely and fair information dissemination to shareholders and investors[115]. - The annual general meeting for 2021 is scheduled for August 27, 2021, with a notice to be sent to shareholders at least 20 business days prior[115].
METASPACEX(01796) - 2021 - 年度财报