Financial Performance - The Group's revenue for the year ended March 31, 2021, increased by approximately HK$0.6 million, or 0.3%, to approximately HK$224.8 million from HK$224.2 million for the year ended March 31, 2020[21] - Gross profit decreased by approximately 10.0% to approximately HK$64.2 million for the year ended March 31, 2021, compared to approximately HK$71.3 million for the previous year[21] - Net profit increased to approximately HK$32.0 million for the year ended March 31, 2021, up from approximately HK$21.6 million for the year ended March 31, 2020[21] - The Group's revenue for the year ended March 31, 2021, was approximately HK$224.8 million, a slight increase of about HK$0.6 million or approximately 0.3% compared to HK$224.2 million for the year ended March 31, 2020[34] - The gross profit for the year ended March 31, 2021, was approximately HK$64.2 million, representing a decrease of approximately HK$7.1 million or approximately 10.0% from HK$71.3 million for the previous year[34] - The net profit for the year ended March 31, 2021, increased to approximately HK$32.0 million, compared to approximately HK$21.6 million for the year ended March 31, 2020[35] - The Group's cost of sales increased by approximately 5.1% to about HK$160.7 million for the year ended March 31, 2021, compared to approximately HK$152.9 million for the previous year[59] - Gross profit decreased by approximately 10.0% to about HK$64.2 million for the year ended March 31, 2021, down from approximately HK$71.3 million for the previous year[59] - Administrative expenses decreased by approximately 11.9% to about HK$40.6 million for the year ended March 31, 2021, down from approximately HK$46.1 million for the previous year[61] Contracts and Projects - The Group was awarded a new contract for smoke curtain replacement at East Rail Line and West Rail Line valued at approximately HK$61.8 million[22] - The previous contract for smoke curtain replacement at Airport Express Line and Tung Chung Line was valued at approximately HK$70.0 million and is expected to be completed in the second half of 2021[22] - The Group's maintenance contract for the automatic fare collection system has been extended for another three years, expected to be completed in the fiscal year 2022[26] - The Group submitted 339 tenders and quotations during the year, with 135 contracts awarded, compared to 325 tenders and 165 contracts in the previous year[45] - Two major projects awarded in the first two months of the financial year ending 31 March 2022 amounted to approximately HK$50.0 million[52] - The Group expects steady growth in revenue from E&M projects, driven by ongoing renovation and replacement initiatives[52] Research and Development - The Group is enhancing technical capabilities by implementing building information modelling (BIM) and applying VR, AR, and MR technologies for training and support[24] - Ongoing R&D efforts include developing software for ferry arrival times, applying robotic technology for cash transport, and studying a kiosk for ePayment transactions[24] - The Group is focusing on R&D efforts, including developing software solutions for ferry terminal arrival time announcements and exploring the feasibility of kiosks for electronic payment transactions[27] - The Group has set up an office at the Hong Kong Science and Technology Parks and recruited three additional R&D staff to enhance R&D capabilities[78] - The Group has purchased three-dimensional design software to create three-dimensional drawings and designs for products[78] - The Group has started preparations for obtaining ISO 90003 certification to enhance software engineering standards[78] Dividends and Financial Management - The Board recommended a final dividend of HK2.73 cents per ordinary share for the year ended March 31, 2021, compared to HK2.0 cents for the previous year[37] - The total planned use of net proceeds was HK$36,000,000, with actual utilization amounting to HK$33,807,000, leaving HK$2,193,000 unutilized as of March 31, 2021[84] - The company expanded its E&M engineering technical capabilities with a planned expenditure of HK$17,952,000, but only utilized HK$9,601,000[84] - The company aimed to deepen its penetration in the Hong Kong E&M engineering industry, specifically in the Transportation Mission Critical System Solutions market, with a planned expenditure of HK$9,252,000, utilizing HK$8,603,000[84] - The company strengthened its financial capabilities for larger-scale E&M engineering projects with a planned expenditure of HK$6,000,000, but actual utilization was HK$15,000,000[84] Employee and Operational Insights - As of March 31, 2021, the Group had approximately HK$113.9 million in bank balances and cash, an increase of approximately HK$30.9 million compared to approximately HK$83.0 million as of March 31, 2020[64] - As of 31 March 2021, the Group employed 203 employees, an increase from 199 employees in 2020[76] - The Group has continued to enhance insurance coverage and employee remuneration packages, including upgrading medical insurance plans[75] - The Group's recruitment efforts are competitive, utilizing various channels to attract qualified engineering staff[186] Customer and Supplier Relationships - The Group has maintained a business relationship with its largest customer since 1978, indicating strong customer retention[187] - For the year ended 31 March 2021, sales to the five largest customers accounted for approximately 90.7% of the Group's total revenue, up from 85.1% in 2020[196] - The largest customer contributed approximately 67.1% of the Group's total revenue for the year ended March 31, 2021, compared to 64.1% in 2020[196] - Purchases from the five largest suppliers accounted for approximately 38.0% of the Group's total purchases in the year ended March 31, 2021, an increase from 35.0% in 2020[197] - The largest supplier represented approximately 11.8% of the Group's total purchases for the year ended March 31, 2021, compared to 10.0% in 2020[197] Challenges and Risks - The Group faces challenges in identifying competent candidates for senior management positions, which could jeopardize long-term objectives[105] - The Group relies on a few key customers, and the loss or downsizing of any of these customers could significantly impact revenue[105] - If the pandemic continues to affect travel and collaboration with overseas partners, it may lead to project delays and reduced efficiency[105] - The Group's reliance on a limited number of customers poses a risk to revenue stability, necessitating diversification strategies[105] Corporate Governance and Compliance - The Group has complied with all relevant environmental laws and regulations during the year ended March 31, 2021[179] - The Group's environmental policies focus on pollution prevention and sustainable development, supported by employee engagement[178] - The company currently does not have any hedging policy in place for its foreign currency exposure, which mainly arises from fluctuations in RMB, EUR, and USD[87]
高萌科技(08065) - 2021 - 年度财报