Financial Performance - The company recorded revenue of approximately HKD 617.8 million for the year, a decrease of about 2% compared to HKD 627.5 million for the previous year[17]. - The construction segment generated revenue of approximately HKD 606.1 million, down about 3% from HKD 626.4 million in the prior year[17]. - The securities investment segment saw a significant increase in revenue to approximately HKD 10.3 million, up about 1,299% from HKD 0.7 million in the previous year[17]. - The property investment segment reported revenue of approximately HKD 200,000, a decrease of about 54% from HKD 400,000 in the prior year[17]. - The lending business segment's revenue increased to approximately HKD 1.1 million, up about 2,068% from HKD 53,000 in the previous year[17]. - The company achieved a net profit attributable to shareholders of approximately HKD 9.9 million, compared to a net loss of HKD 3.2 million in the previous year[17]. - The group recorded revenue of approximately HKD 617,771,000, a decrease of about 2% compared to HKD 627,526,000 for the year ended March 31, 2020[24]. - The construction segment generated revenue of approximately HKD 606,141,000, down about 3% from HKD 626,366,000 for the previous year[24]. - The securities investment segment reported revenue of approximately HKD 10,311,000, an increase of approximately 1,299% from HKD 737,000 for the previous year[24]. - The property investment segment's revenue was approximately HKD 170,000, a decrease of about 54% from HKD 370,000 for the previous year[24]. - The lending segment recorded revenue of approximately HKD 1,149,000, an increase of approximately 2,068% from HKD 53,000 for the previous year[24]. - The group’s gross profit increased by approximately HKD 14,000,000 or 40% to about HKD 48,900,000, with a gross margin of approximately 7.9%, up from 5.6%[41]. - Other income and gains increased by approximately HKD 1,900,000 or 73% to about HKD 4,500,000, mainly due to government subsidies received during the period[42]. - Administrative expenses rose by approximately HKD 5,800,000 or 15.4% to about HKD 43,400,000, primarily due to increased depreciation and other expenses[43]. - Financial expenses increased by approximately HKD 500,000 or 195% to about HKD 700,000, mainly due to increased interest expenses on short-term loans[45]. - Basic earnings per share were HKD 0.0493, compared to a loss of HKD 0.0161 per share for the previous year[35]. - As of March 31, 2021, the group's cash and cash equivalents amounted to approximately HKD 61,969,000, a decrease from HKD 107,689,000 in 2020[47]. - The total assets of the group as of March 31, 2021, were approximately HKD 390,125,000, compared to HKD 388,034,000 in 2020[47]. - The group's capital expenditure during the reporting period totaled approximately HKD 30,045,000, an increase from HKD 20,151,000 in 2020[48]. Business Operations - The company anticipates continued challenges in the Hong Kong construction market but aims to enhance its market position through strong relationships with clients and suppliers[18]. - The company is exploring growth opportunities in China, Hong Kong, and other regions to drive long-term financial returns for shareholders[19]. - The management emphasizes the importance of quality engineering and services in building the company's reputation and market competitiveness[18]. - The company is positioned to benefit from government initiatives promoting the adoption of Modular Integrated Construction (MIC) and infrastructure improvements related to COVID-19[18]. - The total contract value of projects on hand exceeded HKD 1,150,000,000, indicating strong business activity[57]. - The group has secured multiple new projects, including residential developments and contracts with various government departments in Hong Kong[57]. - The group is actively seeking investment opportunities in listed securities and other financial products to generate additional income[61]. - The group completed the acquisition of a commercial property with a total usable floor area of approximately 1,095 square feet for HKD 15,000,000[63]. - The group held approximately HKD 28,900,000 in equity and debt investments at fair value through profit or loss as of March 31, 2021[67]. - The major equity investments include Hong Kong Education (International) Investment Group with a fair value of HKD 2,812,000 and a market value of HKD 5,964,000, representing 20.6% of the group's net asset value[67]. - The group reported a net gain of approximately HKD 6,700,000 from the sale of certain investments in listed securities, with total proceeds of about HKD 43,800,000[70]. - The group has no significant plans for major investments or capital assets as of March 31, 2021[70]. - There were no significant acquisitions or disposals of subsidiaries and associates during the year ended March 31, 2021[71]. - The total employee benefits expenses for the reporting period amounted to approximately HKD 33,000,000, a decrease from HKD 34,000,000 in the previous year[74]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors[84]. - The company has adopted a board diversity policy to enhance performance quality through a balanced mix of skills, knowledge, and experience[84]. - The board held four meetings during the review period, with all directors attending all meetings[96]. - The company secretary received no less than 15 hours of relevant professional training during the fiscal year ending March 31, 2021[95]. - The board is responsible for establishing and reviewing corporate governance policies and practices[80]. - Independent non-executive directors provide independent judgment and contribute positively to the company's strategy and policy formulation[88]. - The company has appropriate insurance arrangements for legal actions against the board[83]. - All directors are required to retire and be re-elected by shareholders at least once every three years[90]. - The company ensures that all directors receive comprehensive and formal training upon appointment[91]. - The board has a formal, prudent, and transparent procedure for the appointment and succession planning of directors[89]. - The company held its annual general meeting on August 20, 2020, chaired by Executive Director Liu Baoyi to ensure effective communication with shareholders[101]. - The Audit Committee reviewed the unaudited quarterly results, interim results, and annual results during the reporting period, confirming compliance with applicable accounting standards[108]. - The Audit Committee held four meetings during the review period to assess financial performance and compliance procedures[111]. - The Remuneration Committee reviewed the remuneration schemes for directors and senior management, ensuring transparency and competitiveness in compensation policies[114]. - The company has established four committees under the Board of Directors: Audit Committee, Remuneration Committee, Nomination Committee, and Internal Control Committee, each with defined responsibilities[107]. - The company ensures that all directors can dedicate sufficient time and effort to manage the business and regularly disclose their commitments[100]. - The roles of the Chairman and CEO are clearly defined and separated to maintain a balance of power and authority within the company[102]. - The Audit Committee consists of three independent non-executive directors, including one with relevant professional qualifications in accounting or financial management[108]. - The company provides adequate resources to the Audit Committee to fulfill its responsibilities effectively[111]. - The Remuneration Committee met on June 22, 2020, to review the remuneration schemes for directors and senior management, making recommendations to the Board[114]. - The Nomination Committee held a meeting on June 22, 2020, to review the structure, size, and composition of the Board of Directors[118]. - The committee ensures that at least one-third of the Board members meet the definition of independent non-executive directors, in accordance with GEM listing rules[123]. - The committee evaluates candidates based on their judgment, commitment to enhancing shareholder value, and ability to provide practical insights and diverse perspectives[122]. - The committee has adopted policies to assist in fulfilling its duties and responsibilities, which can be revised as necessary[119]. - The committee considers all candidates recommended by any director or shareholder, ensuring compliance with the company's articles of association and GEM listing rules[120]. - The committee reviews the effectiveness of the internal control system and risk management processes during its meetings[133]. - The committee assesses the independence of independent non-executive directors annually, considering potential conflicts of interest[123]. - The committee's conclusion was that the composition of the Board should remain unchanged[131]. - The committee can engage professional firms to assist in identifying and evaluating potential nominees[124]. Shareholder Relations - The company will issue an independent Environmental, Social, and Governance report within three months of the annual report publication date[137]. - The board has adopted a dividend policy allowing shareholders to share in the company's profits while reserving sufficient reserves for future development[140]. - The total fees paid to the external auditor, Ernst & Young, during the reporting period amounted to HKD 1,691,000, with HKD 1,600,000 for audit services and HKD 91,000 for non-audit services[146]. - The company has established a risk management and internal control system in compliance with the corporate governance code, with no significant risks identified during the reporting period[150][153]. - The internal audit department, composed of qualified professionals, conducts evaluations of the risk management and internal control systems every six months, with results reported to the board[161]. - The board is responsible for ensuring the effectiveness of the risk management and internal control systems, which are designed to manage rather than eliminate risks[162]. - The company maintains an open and effective investor relations policy, providing timely updates to investors and holding briefings for institutional investors and analysts[164]. - Shareholders can submit inquiries and suggestions to the board, with contact details provided for communication[165]. - The company has established a shareholder communication policy to ensure balanced and timely information dissemination to shareholders and investors[171]. - The board can convene a special meeting upon request from shareholders holding at least 10% of the company's paid-up capital[169]. - The upcoming annual general meeting will utilize a voting process to ensure shareholder participation[166]. - The company’s charter documents have not undergone significant changes during the review period[170]. - The board of directors includes experienced members with backgrounds in finance, management, and corporate governance[174][176][179]. - The company emphasizes the importance of communication between shareholders and the board during the annual general meeting[166]. - Independent resolutions regarding important matters, including the election of individual directors, will be proposed at the annual general meeting[167]. - The company’s website serves as a communication platform for the public and investors to access the latest information[164]. Company Identity - The company changed its name from "Deson Construction International Holdings Limited" to "Smart City Development Holdings Limited" as approved on August 20, 2020[190]. - The company operates primarily in the construction industry, focusing on building construction, electromechanical engineering, and renovation projects in Hong Kong, mainland China, and Macau[191]. - The company did not recommend any final dividend for the reporting period, consistent with the previous year[196]. - The company’s subsidiaries are involved in investment in listed securities, property investment, and lending business[191]. - The company’s financial performance and position as of March 31, 2021, are detailed in the consolidated financial statements[195]. - The company’s property, plant, and equipment, as well as investment properties, underwent changes during the year, with details provided in the financial statements[198]. - The company’s share capital remained unchanged during the reporting period[200]. - The annual general meeting is scheduled for August 20, 2021, with a suspension of share transfer registration from August 17 to August 20, 2021[194]. - The board of directors includes experienced professionals with extensive backgrounds in construction and finance[186][187]. - The company is committed to maintaining compliance with GEM listing rules and corporate governance standards[187].
智城发展控股(08268) - 2021 - 年度财报