Financial Performance - The company's revenue increased by approximately HKD 97.8 million or 26.4% from HKD 370.4 million in the previous fiscal year to approximately HKD 468.2 million in the fiscal year ending March 31, 2020[5]. - The profit for the fiscal year was approximately HKD 23.7 million, a decrease of about HKD 5.5 million compared to the previous year's profit of HKD 29.2 million[5]. - The gross profit for the fiscal year was approximately HKD 49.1 million, down from HKD 50.1 million in the previous fiscal year, resulting in a gross margin decrease from 13.5% to 10.5%[13]. - Profit attributable to equity holders decreased by approximately 18.8% from about HKD 29.2 million in FY2019 to approximately HKD 23.7 million in FY2020[19]. - Other income increased from approximately HKD 6.7 million in FY2019 to about HKD 9.9 million in FY2020, primarily due to rental income from machinery and equipment rising from approximately HKD 0.5 million to about HKD 10.1 million[14]. Revenue and Project Contributions - The revenue contribution from projects where the company acted as the main contractor rose from approximately 72% in the previous fiscal year to about 98% in the current fiscal year[8]. - The number of projects contributing to revenue decreased from 20 in the previous fiscal year to 13 in the current fiscal year, yet revenue still increased due to several large-scale projects reaching construction maturity[9]. - The uncompleted project revenue as of March 31, 2020, was approximately HKD 280.1 million, down from HKD 374.0 million the previous year[8]. Competition and Market Conditions - The company anticipates continued competition in the Hong Kong construction market, which may impact bidding prices and contract awards[6]. - The management will closely monitor the foundation industry and continuously adjust operational strategies to enhance shareholder returns[6]. - The company remains focused on "design and construction" projects to maintain competitive advantages[6]. Environmental Impact - Air pollutant emissions for 2020 included 9.11 kg of nitrogen oxides (NOx), 19.72 kg of sulfur dioxide (SO2), and 0.67 kg of particulate matter (PM), showing a slight increase in NOx and PM compared to 2019[62]. - The increase in sulfur dioxide emissions is attributed to a higher proportion of projects where the company acts as the main contractor, leading to increased use of owned machinery[61]. - Total greenhouse gas emissions decreased from 3,510.42 tons in 2019 to 3,339.77 tons in 2020, representing a reduction of approximately 4.86%[63]. - Energy consumption decreased from 13,072.63 thousand kWh in 2019 to 12,422.21 thousand kWh in 2020, a reduction of about 5.00%[68]. - Water usage increased significantly from 7,165 cubic meters in 2019 to 32,847 cubic meters in 2020, an increase of approximately 358.00% due to a higher proportion of projects undertaken as a general contractor[70]. Governance and Management - The board of directors is responsible for leading and controlling the company, reviewing operational and financial performance, and making decisions on overall strategy and significant acquisitions[103]. - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balanced composition for effective leadership[104]. - The management team is responsible for executing the strategies set by the board and regularly reports on the group's operational status[112]. - The company has established a robust governance structure with various committees, including the remuneration and audit committees[163]. - The board has delegated certain responsibilities related to diversity to the nomination committee, which monitors progress towards measurable diversity goals[114]. Financial Position and Ratios - As of March 31, 2020, the group's current ratio was approximately 1.9, down from 2.1 in FY2019[22]. - The capital debt ratio as of March 31, 2020, was approximately 34.6%, a decrease from 47.8% in FY2019[27]. - The group's cash and cash equivalents were approximately HKD 19.4 million as of March 31, 2020, compared to HKD 16.5 million in FY2019[21]. - The group's net current assets increased to approximately HKD 198.7 million as of March 31, 2020, from HKD 192.0 million in FY2019, primarily due to profits generated during the year[28]. Employee and Training - The total employee cost for the year was approximately HKD 43.3 million, slightly up from HKD 42.5 million in 2019[41]. - Employee turnover rate increased to 64.71% in 2020 from 28.05% in 2019, reflecting a significant rise in workforce flexibility[79]. - The company encourages continuous professional development and provides on-the-job training for employees[81]. - The company has a strong focus on internal training programs for technical personnel to enhance project management capabilities[161]. Risk Management and Compliance - The company has developed and implemented a risk management system defined by its approved risk management policies, which includes risk identification, analysis, and management phases[155]. - The internal control system covers key business areas including revenue management, expenditure management, and compliance, with management responsible for identifying risks and implementing additional controls as necessary[151]. - The board conducts an annual review of the effectiveness of the risk management and internal control systems, covering financial, operational, and compliance controls[152]. Shareholder Relations - The company is committed to open and sincere communication with shareholders, ensuring reasonable information disclosure[148]. - The company has maintained good corporate governance standards to ensure the integrity and transparency of disclosed information[96]. - The company has complied with the corporate governance code as outlined in the listing rules[98].
VICON HOLDINGS(03878) - 2020 - 年度财报