Financial Performance - The company reported revenue of approximately HKD 411.8 million for the year ended March 31, 2021, an increase of about 26.1% compared to HKD 326.5 million for the year ended March 31, 2020[5]. - The loss attributable to shareholders increased significantly to approximately HKD 46.4 million, up from HKD 13.7 million in the previous year[5]. - The gross loss margin decreased due to the adverse impacts of the COVID-19 pandemic, which affected project profit margins and overall performance[5]. - Revenue from foundation and site formation works reached approximately HKD 399.6 million, an increase of about HKD 85.7 million or 27.3% compared to the previous year[13]. - The group recorded a gross loss of approximately HKD 29.6 million, resulting in a gross loss margin of about 7.2%, a decline from a gross profit margin of 2.2% in the previous year[16]. - Other income surged to approximately HKD 5.6 million, a significant increase of about HKD 4.9 million or 700.0% due to government subsidies related to COVID-19 relief measures[18]. - Administrative expenses slightly increased to approximately HKD 21.8 million, up about HKD 0.7 million or 3.3% from the previous year[19]. - The group reported a net loss attributable to owners of approximately HKD 46.4 million, an increase from HKD 13.7 million in the previous year[24]. - Total assets as of March 31, 2021, were approximately HKD 217.8 million, compared to HKD 199.6 million in the previous year[25]. - Total liabilities increased to approximately HKD 104.9 million, up from HKD 40.4 million in the previous year, with current liabilities at approximately HKD 98.6 million[25]. - The debt-to-equity ratio was approximately 7.5%, a rise from 2.6% in the previous year, indicating increased leverage[26]. - The group maintained a conservative financial management policy, closely monitoring cash flow to meet business development needs[27]. Operational Challenges and Strategies - The company faced challenges including significant losses on certain construction projects and increased difficulty in negotiating with clients due to the pandemic[10]. - The overall revenue growth in the industry is slowing, and the company will continue to implement measures to control project costs and improve operational efficiency[11]. - The company aims to enhance its competitiveness by closely monitoring market conditions and continuing to provide quality engineering services[6]. - The company is actively seeking opportunities to expand its scope of work in the construction industry, aspiring to become a general contractor for foundation engineering[10]. - The group is focusing on improving project cost control measures and enhancing project management teams to increase production efficiency[60]. - The construction industry in Hong Kong is expected to remain optimistic despite the competitive landscape and challenges posed by COVID-19[60]. - The group is diversifying its customer base to ensure a sufficient number of awarded projects[60]. Employee and Workforce Management - The total employee cost for the year ended March 31, 2021, was approximately HKD 104.5 million, an increase from approximately HKD 72.1 million for the year ended March 31, 2020[53]. - The group employed a total of 319 employees as of March 31, 2021, a significant increase from 166 employees as of March 31, 2020[53]. - The company has established a performance appraisal system to encourage and reward employees at all levels[39]. - The company has established a performance evaluation system to review employee performance and compensation annually[148]. - The company is committed to continuous employee development and provides training opportunities to enhance professional knowledge and skills[162]. - 39% of male employees and 10% of female employees participated in training during the reporting period, with average training hours of approximately 0.48 hours for males and 16.64 hours for females[163]. - The average training duration for different employee categories was about 32.02 hours for senior employees, 6.18 hours for middle employees, 0.17 hours for junior employees, and 0.23 hours for temporary employees[163]. - The company reported 5 incidents of work-related accidents (more than 3 days of sick leave) in 2020/21, an increase from 3 in 2019/20[159]. - The total number of lost workdays due to work-related injuries decreased to 928 days in 2020/21 from 2,049 days in 2019/20[159]. - The company has implemented COVID-19 preventive measures, including providing masks and sanitizers to employees[161]. - The company has established a comprehensive occupational health and safety management system certified to ISO 45001:2018[157]. - There were no work-related fatalities reported in both 2020/21 and 2019/20, maintaining a 0% fatality rate[159]. Environmental Management - The company recognizes the importance of environmental protection, resource conservation, and sustainable development as mainstream trends in society[126]. - The company's greenhouse gas emissions from mobile combustion sources decreased from 269.34 tons in 2019/20 to 197.1 tons in 2020/21, representing a reduction of approximately 26.8%[138]. - Nitrogen oxides (NOx) emissions decreased from 1,087.08 kg in 2019/20 to 862.07 kg in 2020/21, a reduction of about 20.8%[138]. - The total carbon dioxide (CO2) emissions from electricity purchased (Scope 2) decreased from 9.56 tons in 2019/20 to 8.05 tons in 2020/21, a decrease of approximately 15.8%[138]. - The company aims to use vehicles with lower N2O emissions in the coming year despite an increase in project numbers[139]. - The company has implemented various measures to reduce air pollutant emissions at the source, including using low-sulfur diesel for machinery[135]. - The total waste generated from construction sites is managed by a general contractor, with a focus on recycling and reducing waste[140]. - The company encourages employees to adopt sustainable practices, including electronic record-keeping to minimize paper waste[140]. - The company has committed to meeting local government environmental goals regarding emissions, energy, and waste management[135]. - Total electricity consumption decreased from 15,172.23 kWh in 2019/20 to 14,128.61 kWh in 2020/21, representing a reduction of approximately 6.9%[142]. - Electricity consumption per employee dropped significantly from 83.82 kWh to 44.29 kWh, a decrease of about 47.3%[142]. - The company implemented energy-saving measures, including using energy-efficient appliances and optimizing office lighting systems[143]. - The company encourages the reuse and recycling of greywater on construction sites to reduce freshwater consumption[142]. - The company is committed to further reducing emissions and waste to minimize its adverse impact on the environment and natural resources[144]. Corporate Governance - The management emphasized the importance of maintaining high corporate governance standards to protect shareholder interests[79]. - The board of directors held four meetings during the reporting period, with full attendance from executive members[91]. - The company has adopted the corporate governance code and has complied with its provisions throughout the reporting period[80]. - The board has adopted a diversity policy aimed at achieving a balanced and sustainable development, recognizing the benefits of a diverse board for enhancing performance quality[94]. - All directors participated in continuous professional development during the reporting period to enhance their knowledge and skills[95]. - The audit committee reviewed and recommended approval of the audited financial statements for the year ended March 31, 2021, and the interim financial report for the six months ended September 30, 2020[101]. - The audit committee held two meetings during the reporting period, with all members attending both meetings[101]. - The nomination committee held one meeting to review the board's structure and diversity, and to assess the independence of non-executive directors[105]. - The remuneration committee discussed the current remuneration policy for directors and recommended it for consideration at the 2020 annual general meeting[106]. - The audit committee consists of three independent non-executive directors, ensuring compliance with listing rules and corporate governance codes[98]. - The company reported a total remuneration of HKD 1,077,000 for audit and non-audit services during the reporting period, with HKD 850,000 for audit services and HKD 227,000 for non-audit services[115]. - The board confirmed that there are no significant uncertainties that may cast doubt on the company's ability to continue as a going concern, thus adopting the going concern basis for preparing the financial statements[110]. - The company has engaged an external independent consulting firm to conduct internal audit functions and review the effectiveness of its risk management and internal control systems, with recommendations being implemented in phases[111]. - The company believes that integrating environmental, social, and governance aspects into its risk management system is crucial for sustainable business practices[126]. - The board has identified and assessed significant risks during the reporting period and confirmed that appropriate internal control policies and procedures are in place[111]. - The company has complied with the relevant regulations regarding insider information and has ensured timely public disclosure of material information[117]. - The company has not made any significant changes to its organizational documents during the reporting period[123]. - The board believes that the risk management and internal control systems were effective during the reporting period[111]. Community Engagement and Social Responsibility - The group made donations to local community organizations, including the Hong Kong Five Flower Association, as part of its corporate social responsibility initiatives[178]. - The group contributed to the Community Chest's "Dress Casual Day," which supports over 160 social welfare member organizations benefiting more than 2.5 million people in Hong Kong[178]. - The group emphasizes the importance of maintaining a sustainable and reliable supply chain to minimize negative environmental and social impacts[168]. - The group continuously optimizes and improves its supplier management system to enhance the specialization and transparency of supply chain management[168]. - The group has established policies to prevent all forms of fraud and corruption, ensuring compliance with relevant laws such as the Prevention of Bribery Ordinance[173]. - The group conducted a training event for management in March 2021 focusing on high-risk areas related to corruption, including contract awarding and management[174].
荣智控股(06080) - 2021 - 年度财报