Financial Performance - The Group recorded an increase in revenue from vessel chartering services, driven by major marine construction projects[7]. - The Group's total revenue increased by approximately 11.8%, from approximately HK$181,010,000 for the year ended 31 March 2019 to approximately HK$202,418,000 for the year ended 31 March 2020[15]. - Revenue from vessel chartering and related services rose by approximately 13.6%, from approximately HK$155,954,000 to approximately HK$177,194,000, primarily due to increased services for major marine construction projects[15]. - The Group's profit attributable to owners decreased by approximately 17.5%, from approximately HK$11,753,000 for the year ended 31 March 2019 to approximately HK$9,700,000 for the year ended 31 March 2020[39]. - Basic earnings per share decreased from approximately HK1.43 cents for the year ended 31 March 2019 to approximately HK0.97 cent for the year ended 31 March 2020[39]. Cost and Expenses - The Group's cost of revenue increased by approximately 18.9%, from approximately HK$126,855,000 to approximately HK$150,810,000, mainly due to higher staff costs from an increased number of crew and wage levels[20]. - Gross profit decreased by approximately 4.7%, from approximately HK$54,155,000 to approximately HK$51,608,000, with gross profit margin declining by approximately 4.4 percentage points to approximately 25.5%[20]. - Other income decreased by approximately 17.5%, from approximately HK$2,308,000 to approximately HK$1,904,000, mainly due to the non-recurring nature of prior service income[21]. - Administrative expenses rose by approximately 71.8%, from approximately HK$25,901,000 to approximately HK$44,492,000, attributed to increased Directors' remuneration and business development expenses[23]. Investments and Acquisitions - The Group subscribed for 51% equity of New Legend Ferry Services Limited, enhancing its fleet to meet rising demand for vessel chartering[7]. - The Group completed a share subscription agreement on August 29, 2019, acquiring a 51% equity interest in New Legend for HK$34,500,000[43]. - There were no material acquisitions or disposals of subsidiaries during the year ended March 31, 2020, aside from the aforementioned acquisition[45]. Management and Governance - The Group's management team has over 20 years of experience in the maritime services industry[51]. - The company has a strong focus on vessel chartering and related services, managed by senior manager Mr. Chow Wai Ming, who has been with the group since 1994[58]. - The management team includes independent non-executive directors with extensive backgrounds in finance and real estate, enhancing corporate governance[55]. - The Board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a strong independence element[64]. - The Board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the Company's affairs[81]. Risk Management and Internal Control - The Board is responsible for maintaining effective risk management and internal control systems, conducting an annual review of these systems[99]. - The Audit Committee is tasked with reviewing the effectiveness of the Group's risk management and internal control systems at least annually, covering all material controls including financial, operational, and compliance controls[102]. - The Group does not have an internal audit function due to its size and cost-effectiveness considerations, with the Board directly overseeing risk management and internal control systems[99]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the Group's performance in Environmental and Social aspects from April 1, 2019, to March 31, 2020[120]. - The Group is committed to operating its business in an environmentally-friendly manner while providing favorable returns for its shareholders[133]. - The Group abides by all relevant local laws and regulations related to environmental protection and pollution control, including the Merchant Shipping (Local Vessels) Ordinance and the Air Pollution Control Ordinance[134]. - The Group aims to keep close communication with its stakeholders and improve its ESG performance and management[130]. - The Board is fully responsible for the Group's ESG strategy and reporting, monitoring daily operations through regular meetings[130]. Employee and Workplace Safety - The Group recorded zero work-related fatalities during the Reporting Period[199]. - A total of 2 work-related injuries were reported, resulting in 27 lost days[199]. - Regular safety surveys and inspections are conducted for the Group's vessel fleet to ensure safety and seaworthiness[197]. - The Group provides regular occupational health and safety (OH&S) training to crew members and assesses their understanding[197]. - The Group has established a Code of Safe Working Practices for crew members, outlining essential health and safety information[197].
润利海事(02682) - 2020 - 年度财报