Financial Performance - The Group's revenue for the year amounted to approximately HK$345.6 million, representing an increase of approximately 10.2% from the previous year[14]. - Profit attributable to owners of the Company for the year, excluding listing expenses, was approximately HK$41.0 million; after accounting for listing expenses, profit was approximately HK$37.6 million[14]. - The Group recorded total revenue of approximately HK$345.6 million, with profit attributable to owners of approximately HK$41.0 million before listing expenses and HK$37.6 million after listing expenses for the Year[27]. - Revenue for the year was approximately HK$345.6 million, representing an increase of approximately 10.1% from HK$313.7 million for the previous year[56]. - Gross profit increased by approximately 9.8% from HK$51.0 million to approximately HK$56.0 million, with a stable gross profit margin of approximately 16.2%[56]. - The total comprehensive income attributable to equity shareholders increased by approximately 33.8% to about HK$37.6 million, compared to HK$28.1 million in the previous year[60]. - Revenue from marine construction works was approximately HK$166.9 million, representing a decrease of approximately 10.4% compared to HK$186.3 million for the year ended 31 May 2020[28]. - Revenue from other civil engineering works amounted to approximately HK$160.4 million, accounting for approximately 46.4% of total revenue, an increase from 39.4% in the previous year[35]. - Revenue from vessel chartering services amounted to approximately HK$18.3 million, an increase of approximately 408.3% compared to HK$3.6 million in the previous year[47]. Business Strategy and Market Conditions - The Group aims to explore suitable business opportunities and execute business strategies, potentially expanding beyond the Hong Kong market in the future[19]. - The overall market conditions of the construction industry in Hong Kong have been relatively stable, but uncertainties due to COVID-19 are expected to affect economic recovery temporarily[24]. - The Group's proactive business strategy aims to create greater value for shareholders and investors in the coming year[26]. - The Group aims to expand its customer base while maintaining relationships with existing clients to adapt to changing customer demands[29]. - The Group's business strategy includes exploring suitable business opportunities to optimize competitive advantages[29]. - The Group expects a significant decrease in marine construction works due to a forecast downturn in the industry from 2022 to 2026, which may lead to a change in project mix and revenue contributions[156]. Operational Management and Governance - The Group is committed to ensuring the health and safety of staff, customers, and business partners as a top priority[24]. - The Group has implemented precautionary measures to ensure a hygienic and safe working environment for employees amid the ongoing COVID-19 pandemic[19]. - The Group's management team has a combined experience of over 70 years in their respective fields, enhancing operational efficiency and strategic decision-making[124][132][138]. - The company is focused on expanding its project management capabilities and enhancing quality control measures[104]. - The company is committed to maintaining high standards of governance and compliance, as evidenced by the roles of its independent directors and audit committees[121][125]. Customer and Supplier Relationships - The Group will continue to maintain relationships with existing customers while expanding its customer base to capture opportunities from new customers[25]. - A significant portion of the Group's revenue is derived from a limited number of customers, and any decrease in contracts with major customers may adversely affect financial results[148]. - The Group maintains strong relationships with suppliers and subcontractors, continuously assessing their performance and safety records[169]. - The Group holds regular meetings with customers to gather feedback and understand their needs and expectations[168]. Human Resources and Staff Development - The Group employed 46 staff as of 31 May 2021, with total staff costs amounting to approximately HK$31.2 million, an increase from approximately HK$28.0 million in the previous year[67][72]. - The Group emphasizes continuous professional development for its staff to adapt to industry changes and improve service delivery[132][138]. - The Group provides competitive remuneration and development opportunities to attract and retain competent employees[168]. Financial Management and Capital Allocation - The Group's liquidity and capital requirements are primarily funded through capital contributions from shareholders and cash inflows from operating activities[56]. - The net proceeds from the initial public offering were approximately HK$84.0 million, with no material changes in the proposed applications of these proceeds as of the report date[85]. - The planned use of proceeds includes expanding the fleet of vessels and site equipment, with HK$56.8 million allocated for this purpose[89]. - The remaining net proceeds are deposited in interest-bearing bank accounts with licensed banks in Hong Kong[90]. - The company continues to adopt a prudent and flexible approach in utilizing the net proceeds due to the ongoing COVID-19 situation[86]. Environmental Compliance - The Group did not record any material non-compliance with environmental requirements during the Year, and there were no environmental claims or penalties[164]. - There were no significant non-compliance issues with applicable environmental regulations during the Year[170].
天成控股(02110) - 2021 - 年度财报