Financial Performance - For the financial year ended 31 March 2019, the Group recorded revenue of HK$376.6 million, representing a 10.6% decrease compared to HK$421.1 million for the previous year[21]. - The consolidated profit attributable to owners of the Company totaled HK$22.9 million, a 54.3% decrease from HK$50.1 million in the prior year[22]. - One-off expenses of HK$22.6 million were incurred for the Company's listing on the Main Board of The Stock Exchange of Hong Kong during the year[22]. - The basic earnings per share for the year was HK$1.06 based on the weighted average number of 21,517,869 shares in issue after the listing[22]. - Overall gross profit margins also decreased, contributing to the drop in consolidated profit[22]. - The decline in revenue was primarily due to delays in the master programmes of certain projects[21]. - The total amount of contracts on hand as of March 31, 2019, was HK$552.4 million[65]. - The Group had a net cash outflow of HK$29.7 million in operating activities during the year[87]. - The total cash and bank balances amounted to HK$304.6 million, accounting for 61.5% of current assets, compared to 19.9% in the previous year[86]. Shareholders' Equity - Shareholders' funds increased significantly to HK$508.8 million from HK$128.7 million in the previous year[17]. - As of March 31, 2019, the net asset value of the Group was HK$508.8 million, an increase of 295.3% from HK$128.7 million in the previous year[26]. - The increase in net asset value was primarily due to proceeds of HK$43.6 million from the issuance of new shares and a capital contribution of HK$318.6 million from Hanison Construction Holdings Limited[26]. - The net asset value per share as of March 31, 2019, was HK$1.17, based on 436,332,630 shares issued[26]. - The shareholders' funds increased to HK$508.8 million, including reserves of HK$465.2 million, an increase of HK$380.1 million from the previous year[94]. Business Outlook - The Group is optimistic about future business opportunities due to the anticipated increase in construction projects related to new properties[45]. - The Hong Kong Government is expected to complete approximately 100,400 public housing units in the next five years and about 93,000 units of private residential property in the next three to four years[44]. - The construction activities in Hong Kong have intensified due to strong demand for residential, office, and commercial buildings, providing opportunities for the Group[37]. - The company expects steady and considerable growth in the curtain wall business due to high demand for lightweight and sustainable solutions[68]. - Increasing demand for energy-efficient curtain walls is anticipated to drive market growth in the coming years[69]. Corporate Governance - The Company complied with all provisions of the Corporate Governance Code from the Listing Date to March 31, 2019[118]. - The Board of the Company comprises a diverse group of directors, including 3 independent non-executive directors, representing at least one-third of the Board[125]. - The Company has received written annual confirmations of independence from all independent non-executive directors, ensuring compliance with Listing Rules[130]. - The Board Diversity Policy was adopted on February 22, 2019, focusing on diversity in gender, age, cultural background, professional experience, and skills[131]. - The Nomination Committee will review the Board Diversity Policy annually to ensure its effectiveness and monitor its implementation[133]. Risk Management - The Group's risk management and internal control systems are designed to provide reasonable assurance against material misstatement or loss, with annual reviews conducted to assess their effectiveness[179]. - An external consultant was engaged to assess the internal controls of the Group and identify weaknesses, with no significant risk issues identified during the review[186]. - The Risk Management Committee is chaired by the Joint Managing Directors and includes various senior staff members to monitor and manage risks[179]. - The Company intends to outsource its internal audit function in the future, following the assessment of internal controls by an external consultant[180]. Remuneration and Employment - The Group employed 249 full-time employees as of March 31, 2019, with 134 of them based in Mainland China[113]. - The Group offers competitive remuneration packages, including discretionary bonuses and cash allowances, to attract and retain skilled personnel[112]. - The Remuneration Committee assessed key economic indicators, market trends, headcount, and staff costs to determine remuneration packages for executive directors and senior management[169]. - The Remuneration Committee ensured that no director participated in deciding their own remuneration, adhering to the Listing Rules[167]. Board Meetings and Committees - The company held one regular board meeting from the Listing Date to March 31, 2019, primarily to approve the Group's forecast and budget, adopt the dividend policy, and the bonus scheme[159]. - The Audit Committee was established on February 22, 2019, comprising three independent non-executive directors, with Mr. Yip Kai Yung as the Chairman[160]. - The Nomination Committee was established on February 22, 2019, and held one meeting during the period from the Listing Date to March 31, 2019, focusing on reviewing the structure, size, and composition of the Board[163]. - The company expects to hold at least four regular board meetings per year, with notices provided to all directors at least 14 days before the meetings[159].
美亨实业(01897) - 2019 - 年度财报