Financial Performance - The group's revenue for the fiscal year ending March 31, 2021, was approximately HKD 458.5 million, a decrease of about HKD 274.8 million or 37.5% compared to HKD 733.3 million for the previous fiscal year[9]. - The company recorded revenue of approximately HKD 458.5 million for the year, a significant decrease of 37.5% compared to HKD 733.3 million in the previous year[38]. - Cost of revenue decreased by 42.6% to approximately HKD 357.8 million from HKD 623.6 million in the previous year[39]. - Gross profit was approximately HKD 100.7 million, down 8.3% from HKD 109.7 million, with a gross margin increase from 15.0% to 22.0%[39]. - Other income for the year was approximately HKD 6.8 million, including government subsidies of HKD 4.8 million related to pandemic relief[40]. - Administrative and other operating expenses decreased to approximately HKD 44.1 million from HKD 46.6 million, a reduction of about HKD 2.5 million[41]. - Financial costs were approximately HKD 0.9 million, down 50% from HKD 1.8 million due to reduced bank borrowings[42]. - The company's net profit for the year was approximately HKD 50.2 million, a decrease of 6.7% from HKD 53.8 million in the previous year[48]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.025 per share and a special dividend of HKD 0.03 per share[11]. - The board proposed a final dividend of HKD 0.025 per share and a special dividend of HKD 0.030 per share, totaling HKD 33 million[49]. Contracts and Projects - As of March 31, 2021, the group had an outstanding contract amount of HKD 1,032 million, significantly up from HKD 410 million as of March 31, 2020[10]. - The group successfully secured several new contracts during the fiscal year, despite challenges posed by the COVID-19 pandemic[10]. - Major ongoing projects include a steel structure and roofing project at Hong Kong International Airport valued at HKD 96.78 million, expected to be completed by June 2021[18]. - Another significant project is the steel structure and roofing project at Lamma Island Unit 11, valued at HKD 80.83 million, with an expected completion date of December 2021[18]. Financial Management and Liquidity - The group plans to maintain prudent financial management while actively seeking market opportunities to stimulate growth[10]. - Current assets increased slightly to HKD 386.2 million from HKD 382.2 million, while current liabilities decreased by 17.4% to HKD 157.3 million[34]. - The current ratio improved to 2.5 from 2.0, indicating a stronger liquidity position[51]. - The company's equity attributable to owners increased to approximately HKD 268.2 million as of March 31, 2021, compared to HKD 231.9 million as of March 31, 2020[57]. - The capital debt ratio decreased to 4.3% as of March 31, 2021, down from approximately 7.7% as of March 31, 2020[58]. - The net cash generated from operating activities for the year was approximately HKD 15.7 million[58]. - The company maintained a prudent financial management policy throughout the year, ensuring a stable liquidity position[59]. Employee and Workforce Management - The total employee benefit expenses for the year amounted to approximately HKD 62.2 million, down from HKD 64.2 million in the previous fiscal year[67]. - The company employed 170 staff as of March 31, 2021, a decrease from 193 staff as of March 31, 2020[67]. - As of March 31, 2021, the group employed 79 staff in Hong Kong (2020: 80) and 91 staff in China (2020: 113)[200]. - The company provides a 5% contribution to the Mandatory Provident Fund for all salary levels in Hong Kong[196]. - The company emphasizes competitive compensation and benefits based on industry benchmarks to attract and retain talent[196]. - Employee benefits include healthcare, travel insurance, paid and unpaid leave, and an employee stock option plan[196]. - The company is committed to creating a balanced work environment that respects employees' rights and promotes their potential[195]. - The company does not employ child or forced labor, adhering to ethical labor practices[196]. - The company ensures fair treatment of employees regardless of nationality, race, religion, age, gender, or disability[196]. Corporate Governance and Compliance - The management team emphasized the importance of maintaining high corporate governance standards, adhering to all regulatory requirements[88]. - The board of directors has established specific committees to oversee compliance and governance practices, ensuring transparency and accountability[89]. - The audit committee reviewed and evaluated the group's financial reports and performance announcements, providing opinions on risk management and internal control systems[109]. - The total fees paid to the auditor for audit services amounted to HKD 680,000, with no fees for non-audit services[115]. - The company has established a board diversity policy to ensure a balanced knowledge and perspective in decision-making[101]. - All independent non-executive directors confirmed their independence from the group during the year[100]. - The board is responsible for assessing and determining the nature and extent of risks related to the group's operations[124]. - The company has implemented internal control and risk management systems to protect shareholder interests and company assets[124]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of sustainable development and stakeholder engagement in its operations[145]. - The corporate social responsibility strategy is formulated by senior management and approved by the board, aiming to align the group's philosophy with long-term stakeholder value creation[150]. - The ESG working group was established in 2016 and consists of department heads from key areas of the company, ensuring effective communication of CSR goals and directives from the board[155]. - The ESG working group monitors activities related to environmental, social, and governance aspects to promote continuous improvement[156]. - Key performance indicators (KPIs) are identified for measuring performance and action plans related to sustainability initiatives[157]. - Stakeholder engagement is crucial for assessing priorities in CSR strategy formulation, with various communication channels established to understand stakeholder concerns[159]. - The company prioritizes significant ESG issues identified through a materiality assessment, focusing on long-term planning[164]. - The top ten ESG issues are highlighted, including air pollutants and greenhouse gas emissions, energy consumption, and human rights[167]. - The company has transitioned its occupational health and safety management system from OHSAS 18001:2007 to ISO 45001:2018, focusing on risk prevention and continuous improvement[183]. - The company has established a stakeholder engagement process to assess and manage environmental, social, and governance (ESG) risks, ensuring adequate human and financial resources are allocated[171]. - The company actively promotes employee health management and provides necessary education and training for occupational safety[179]. - The company has taken measures to ensure a safe working environment during the COVID-19 pandemic, including dividing office staff into groups to minimize contact[189]. - The company has reported no significant non-compliance issues regarding the provision of a safe working environment and protection against occupational injuries during the reporting year[191]. Awards and Recognition - The company received the "Best Safety Subcontractor" award from a client for the Andashan Road Quarry project in December 2020[139]. - The company was awarded the "Model Subcontractor Award" by the Hong Kong Development Bureau in October 2020[139].
应力控股(02663) - 2021 - 年度财报