Financial Performance - The Group recorded a turnover of approximately HK$42.8 million for the year ended 31 March 2020, representing a 52% increase compared to the previous year, despite a loss of approximately HK$28.1 million[16]. - The total revenue for the year ended March 31, 2020, was approximately HK$42.8 million, representing an increase of about HK$14.6 million or 51.8% compared to HK$28.2 million in 2019[39]. - The sourcing and merchandising of fine and rare wines business recorded a turnover of approximately HK$21.7 million after restructuring, which is anticipated to strengthen the Group's development[19]. - Revenue from the sourcing and merchandising of fine and rare wines increased to approximately HK$21.7 million, up by approximately HK$15.9 million from HK$5.8 million in the previous year[47]. - The Group's gross profit for the year ended March 31, 2020, was approximately HK$5.5 million, a decrease from approximately HK$7.6 million in 2019[50]. - The Group's loss for the year increased by approximately HK$8.0 million to approximately HK$28.1 million, primarily due to a loss on changes in fair value of investment property and impairment of intangible assets[59]. Revenue Streams - Turnover from the fitting out and engineering services business decreased to approximately HK$16.7 million due to delays caused by social unrest and the COVID-19 outbreak[17]. - The leasing of construction equipment business commenced operations and achieved a turnover of approximately HK$3.6 million, expected to provide a sustainable income stream with steady growth in the future[18]. - Revenue from the leasing of construction equipment business was approximately HK$3.6 million during the year, marking its operational commencement[42]. - The provision of fitting out and engineering services and design and procurement of furnishings and related products services generated a total revenue of approximately HK$16.7 million, a decrease of about 12.1% from HK$19.0 million in the previous year[41]. - The Group secured contracts totaling approximately HK$18.4 million during the year, with approximately HK$7.4 million recognized in the second half of the year[61]. Future Outlook - The Group is actively negotiating contracts in public housing maintenance and refurbishment, which is expected to provide stable and recurring income[25]. - The Group anticipates more contracts/orders in the near future due to the increasing demand from various infrastructure construction projects in Hong Kong[26]. - The Group expects significant growth in rental income from the leasing of construction equipment as operations scale up in the coming years[77]. - The Group is actively seeking new investment opportunities to diversify its principal activities and strengthen its revenue base[85]. Administrative and Operational Efficiency - The Group's overall administrative expenses decreased by approximately HK$7.1 million or 22.1% from approximately HK$32.1 million to approximately HK$25.0 million for the year[55]. - The gross profit margin for fitting out and engineering services increased to 22.9% despite a slight decrease in gross profit by approximately HK$0.3 million[52]. - The gross profit from leasing of construction equipment was approximately HK$0.3 million, with strategic pricing offered to new customers to establish relationships[53]. Corporate Governance - The company has complied with the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules for the year ended March 31, 2020[163]. - The Board currently comprises three executive Directors, one non-executive Director, and three independent non-executive Directors[170]. - The principal function of the Board includes approving overall business plans and strategies, and monitoring the implementation of these policies[171]. - The company has established an audit committee, a remuneration committee, a nomination committee, and a compliance committee with specific written terms of reference[163]. - All Directors confirmed compliance with the code of conduct for dealing in securities throughout the year ended March 31, 2020[169]. Employee and Remuneration - Total remuneration for the year ended March 31, 2020, was approximately HK$11.5 million, a decrease from HK$17.1 million in 2019, primarily due to stringent control in staff remuneration[120][124]. - As of March 31, 2020, the Group employed 27 employees, down from 30 in 2019[119][124]. Risks and Challenges - The Group has faced significant risks including social unrest and the impact of COVID-19 on its operations[127]. Investments and Acquisitions - The company issued 87,000,000 new shares in the 2019 placing, raising approximately HK$6.5 million after expenses[92]. - The 2018 placing raised net proceeds of approximately HK$13.8 million, intended for purchasing construction equipment for leasing purposes[96]. - The 2019 placing raised net proceeds of approximately HK$6.5 million, also intended for purchasing construction equipment for leasing purposes[101].
中新控股(08125) - 2020 - 年度财报