Financial Performance - The company's revenue for the year ended March 31, 2021, was HKD 247.5 million, a decrease of approximately HKD 4.3 million or 1.7% compared to HKD 251.8 million in 2020[12]. - Revenue from the liquefied natural gas (LNG) business in China was approximately HKD 56.4 million, significantly higher than the previous year's contribution of HKD 0.3 million, as the current year included a full year's performance[12]. - Revenue from Hong Kong operations was HKD 188.1 million, a decrease of approximately HKD 63.3 million or 25.2% from HKD 251.4 million in 2020, primarily due to COVID-19 impacting the Blue Tin project[12]. - The gross loss for the year was HKD 28.5 million, compared to a gross profit of HKD 7.9 million in the previous year[8]. - The company reported a loss before tax of HKD 33.3 million, compared to a loss of HKD 10 million in the previous year[8]. - The total gross loss for the group was approximately HKD 28,500,000, a shift from a gross profit of approximately HKD 7,900,000 in the previous year[28]. - The total loss and comprehensive expenses for the year amounted to approximately HKD 31,800,000, an increase of about HKD 23,700,000 or 290% compared to the previous year[33]. Assets and Liabilities - The company's total assets as of March 31, 2021, were HKD 107.7 million, slightly up from HKD 106.9 million in 2020[8]. - The net asset value decreased to HKD 45.8 million from HKD 77.6 million in the previous year[8]. - The group had cash reserves of approximately HKD 7,800,000 as of March 31, 2021, down from approximately HKD 27,600,000 the previous year[34]. - The company reported a reserve of HKD 34,280,000 as of March 31, 2021, down from HKD 68,950,000 in 2020, indicating a decrease of approximately 50%[140]. Operational Highlights - The group secured 10 new projects during the reporting period, generating revenue of approximately HKD 188.1 million, a decrease of 25.2% from HKD 251.4 million in 2020[13]. - The group completed 9 projects during the reporting period, contributing revenue of HKD 78.4 million, up from HKD 61.1 million in 2020[23]. - The group confirmed revenue of HKD 388.7 million from ongoing projects as of March 31, 2021, including HKD 33.9 million from newly awarded projects[24]. - The group received 10 new projects related to site formation, road, drainage, and marine engineering, with a total contract value of approximately HKD 294.6 million, compared to HKD 146.6 million in 2020[24]. Cost Management - Administrative expenses were reduced to HKD 13.9 million from HKD 17.5 million in 2020, reflecting cost control measures[8]. - Other income increased by approximately 702% to about HKD 11,400,000, primarily due to government employment support subsidies of approximately HKD 7,600,000[29]. - Administrative expenses decreased by about 20% to approximately HKD 13,900,000, consistent with the decline in revenue[32]. Governance and Management - The company has a strong management team with over 22 years of experience in various fields, including corporate finance and information technology[49]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[60]. - The company has adopted corporate governance policies in line with the Hong Kong Stock Exchange's guidelines, maintaining high standards of accountability and transparency[58]. - The independent non-executive directors bring over 30 years of experience in construction and property development, enhancing the board's expertise[50]. - The company emphasizes the importance of risk management and stakeholder interests in its governance practices[58]. - The board members are committed to dedicating sufficient time and effort to the company's affairs, ensuring effective management[61]. Risk Management - The company identified key risks including potential revenue fluctuations due to changes in project instructions, which may adversely affect profitability[131]. - The COVID-19 pandemic has negatively impacted the economy and market demand in Hong Kong and mainland China, leading the company to consider operational adjustments[132]. - Increased competition in the construction industry is anticipated due to a decline in available bidding projects, prompting the company to lower profit margins to enhance bidding success[133]. Compliance and Reporting - The company has complied with all relevant corporate governance codes during the reporting period, although the roles of chairman and CEO are held by the same individual[58]. - The company has implemented internal control systems and risk management procedures as part of its governance framework[63]. - The auditor for the financial statements is Chen Songhua CPA, who is eligible for reappointment at the upcoming annual general meeting[180]. - The independent auditor's report does not cover other information included in the annual report, which is the responsibility of the company's directors[194]. Shareholder Engagement - The company emphasizes the importance of maintaining communication with shareholders through annual general meetings and regular disclosures[111]. - The board of directors is committed to providing high levels of disclosure and financial transparency to shareholders[111]. - The company has a dedicated website for public investors to access financial information and corporate governance updates[111].
世纪集团国际(02113) - 2021 - 年度财报