Financial Performance - The company recorded revenue of approximately HKD 326.5 million for the year ended March 31, 2020, a decrease of about 16.8% compared to HKD 392.5 million for the year ended March 31, 2019[7]. - The loss attributable to shareholders significantly decreased from approximately HKD 34.5 million in the previous year to about HKD 13.7 million for the year ended March 31, 2020[7]. - The gross profit margin improved due to a significant reduction in the number of loss-making projects compared to the previous year[7]. - Revenue from foundation and site formation works for the fiscal year was approximately HKD 313.9 million, a decrease of about HKD 67.7 million or 17.7% compared to approximately HKD 381.6 million for the previous year[15]. - The group reported a gross profit of approximately HKD 7.3 million for the fiscal year, compared to a gross loss of approximately HKD 12.4 million in the previous year, resulting in a gross profit margin of approximately 2.2%[18]. - The group recorded a net loss attributable to owners of approximately HKD 13.7 million, a decrease from approximately HKD 34.5 million in the previous year, primarily due to an increase in gross profit margin[25]. - Other income for the fiscal year was approximately HKD 0.7 million, a decrease of about HKD 0.6 million or 46.2% from approximately HKD 1.3 million in the previous year[19]. - Administrative expenses for the fiscal year were approximately HKD 21.1 million, slightly down from approximately HKD 21.2 million in the previous year, representing a decrease of about HKD 0.1 million or 0.5%[20]. Challenges and Outlook - The company faces challenges including delays in project approvals and material supply disruptions due to the COVID-19 pandemic, which have increased warranty costs and office expenses[8]. - The company remains optimistic about the industry outlook, supported by various public construction projects, including the Hong Kong International Airport's three-runway system[8]. - The COVID-19 pandemic and trade tensions with the U.S. have negatively impacted business confidence and the competitive landscape in Hong Kong's construction market[55]. - The company plans to maintain its market position by lowering bid prices and diversifying its customer base[55]. - The company will continue to focus on improving project cost control measures and enhancing project management efficiency[55]. Contracts and Projects - For the fiscal year ending March 31, 2020, the group secured 32 new contracts with a total contract value of approximately HKD 401.7 million, completing 15 projects valued at approximately HKD 196.6 million[14]. Financial Position - Total assets as of March 31, 2020, were approximately HKD 199.6 million, down from approximately HKD 224.1 million in the previous year, with current assets at approximately HKD 155.3 million[26]. - Total liabilities as of March 31, 2020, were approximately HKD 40.4 million, a decrease from approximately HKD 51.1 million in the previous year, with current liabilities at approximately HKD 36.7 million[26]. - The group maintained a conservative financial management policy, ensuring sufficient liquidity to meet business development needs[28]. Employee and Management - The total employee cost, including director salaries, was about HKD 72.1 million for the year ended March 31, 2020, compared to approximately HKD 77.9 million for the year ended March 31, 2019[47]. - The number of employees decreased significantly from 253 as of March 31, 2019, to 166 as of March 31, 2020, primarily due to the completion of labor-intensive projects[47]. - The company has implemented a performance appraisal system to encourage and reward employees at all levels[36]. - The group has implemented a performance evaluation system to review employee performance and compensation annually[147]. Corporate Governance - The company has maintained a high level of corporate governance, which is considered essential for protecting and enhancing shareholder and stakeholder interests[71]. - The board of directors consists of six members, including two executive directors and three independent non-executive directors, ensuring compliance with listing rules[77]. - The company has adopted the corporate governance code as its own, and has complied with it during the reporting period, except for a specific provision regarding the separation of roles of the chairman and CEO[72]. - The company has appointed independent non-executive directors for a term of three years, with the possibility of re-election, ensuring compliance with listing rules regarding independence[79]. - The audit committee, composed entirely of independent non-executive directors, has reviewed and recommended approval of the audited financial statements for the year ended March 31, 2020[91]. Environmental and Social Responsibility - The company has established an environmental management system in accordance with ISO 14001:2015 to improve its ability to identify, reduce, prevent, and manage environmental impacts[125]. - The company emphasizes the importance of sustainable development and has invested significant resources to comply with local government environmental goals regarding emissions, energy, water, material usage, and waste management[126]. - The group has adhered to all relevant environmental laws and regulations during the reporting period, with no significant violations reported[136]. - The company has actively engaged in corporate social responsibility activities to enhance its community relations[121]. - The company donated 2 tons of rice to the Yuen Long Chiu Kiu Association, which will distribute it to those in need, including the elderly and impoverished individuals[169]. Safety and Health - The group reported 0 work-related deaths and a work-related death rate of 0% for the 2019/20 year[151]. - The group has established a health and safety management system certified to ISO 45001:2018[148]. - The group has taken measures to protect employees' health during the COVID-19 pandemic, including providing masks and disinfectants[153]. Training and Development - The company provides comprehensive on-the-job training for new employees to familiarize them with corporate culture, management systems, and business processes[155]. - Training programs are designed to enhance employees' professional knowledge and skills, with senior employees mentoring junior staff[155]. - 36% of male employees and 65% of female employees participated in training, with average hours of approximately 0.91 hours and 7.79 hours respectively[156]. Shareholder Information - The company did not recommend any final dividend for the year ending March 31, 2020[54]. - The board does not recommend the payment of a final dividend for the year ended March 31, 2020 (2019: none) [193].
荣智控股(06080) - 2020 - 年度财报