Financial Performance - For the fiscal year ending March 31, 2019, the company recorded a net loss of approximately HKD 2.4 million, compared to a net loss of approximately HKD 14.5 million in the previous year[21]. - The net loss was primarily due to a financial asset impairment provision of approximately HKD 4.4 million; excluding this provision, the company would have reported a net profit of approximately HKD 2.0 million[21]. - The group's revenue for the year ended March 31, 2019, was approximately HKD 152.5 million, an increase of about 24.0% compared to approximately HKD 123.0 million for the year ended March 31, 2018[30]. - The cost of sales for the year ended March 31, 2019, was approximately HKD 138.7 million, an increase of about 18.6% from approximately HKD 116.9 million for the previous year[31]. - The gross profit for the year ended March 31, 2019, was approximately HKD 13.8 million, a significant increase of about 126.2% from approximately HKD 6.1 million in the previous year, with a gross margin rising from about 4.9% to 9.0%[33]. - Administrative expenses for the year ended March 31, 2019, were approximately HKD 14.2 million, a decrease of about 43.9% from approximately HKD 25.3 million in the previous year[35]. - The group recorded a loss attributable to owners of approximately HKD 2.4 million for the year ended March 31, 2019, compared to a loss of approximately HKD 14.5 million in the previous year[36]. Business Strategy and Operations - The company aims to diversify its revenue sources by seeking more profitable foundation engineering, renovation, and machinery rental projects[18]. - The company is focused on improving operational efficiency and profitability, actively seeking potential business opportunities to expand revenue streams and enhance shareholder returns[22]. - The company remains cautiously optimistic about its business prospects despite facing challenges such as rising construction and labor costs, slow approval processes for infrastructure financing, and market oversupply[17]. - The company has invested significantly in machinery and possesses all standard equipment required for drilling pile construction[21]. - The net proceeds from the company's listing provide financial resources to pursue business opportunities and strategies, further enhancing its market position in foundation engineering and drilling pile projects[22]. - The company plans to implement tighter cost controls to improve business profitability in response to future challenges[17]. - The company is committed to increasing its market operational efficiency to counteract the competitive pressures in the foundation industry[17]. - The company anticipates an increase in demand for small diameter pre-drilled piles due to recent contracts awarded and trends in private development projects[57]. Human Resources - The total employee cost, including directors' remuneration and mandatory provident fund contributions, was approximately HKD 33.3 million, an increase from HKD 28.8 million in 2018[51]. - The company has successfully recruited additional personnel, including 1 site manager, 1 quantity surveyor, 1 client manager, 2 site engineers, and 2 assistant engineers to support business growth[58]. Corporate Governance - The company has maintained high levels of corporate governance, which is crucial for gaining and maintaining shareholder trust[85]. - The board of directors includes three independent non-executive directors, exceeding the GEM listing rules requirement of at least one-third[92]. - The company has adopted the GEM listing rules regarding securities trading by directors, confirming compliance with no non-compliance incidents during the year[87]. - The company’s management is responsible for daily operations and reports regularly to the board on their work and business decisions[91]. - The company has purchased liability insurance for its directors and senior management to protect against potential legal liabilities[89]. - The company’s independent non-executive directors have confirmed their independence annually, in line with GEM listing rules[93]. - The company’s executive directors and independent non-executive directors have service contracts with an initial term of three years[95]. - The chairman of the board, Mr. Tang, is responsible for managing the board and presiding over meetings[96]. - The company has complied with all applicable corporate governance code provisions as of March 31, 2019[86]. - The company is committed to enhancing shareholder value through effective corporate governance practices[86]. - The Remuneration Committee reviewed the compensation of directors and senior management, deeming it fair and reasonable for the year ending March 31, 2019[101]. - The Audit Committee held four meetings during the year to review the company's financial performance and internal control systems[104]. Risk Management and Internal Control - The company maintains an effective internal control and risk management system to safeguard shareholder investments and group assets[134]. - The risk management process includes identifying major risks, assessing their potential impact, and planning effective mitigation activities[135]. - The board reviews the effectiveness of the risk management and internal control systems at least annually[134]. - The audit committee has reviewed the internal control system and considers it effective and sufficient[140]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and integrates environmental, social, and governance (ESG) initiatives into its business strategy[146]. - An ESG task force has been established to collect relevant data and report on the company's performance in these areas[147]. - The board sets the overall policy for the company's ESG strategy and ensures the effectiveness of risk control mechanisms[147]. - The group has established effective management policies and internal control systems regarding environmental, social, and governance (ESG) matters as of the fiscal year ending March 31, 2019[159]. - The group reported no significant violations of environmental laws and regulations during the fiscal year, including the Air Pollution Control Ordinance and Waste Disposal Ordinance in Hong Kong[162]. - The group actively implements measures to reduce emissions, including dust control methods at construction sites and covering loads before leaving the site[163]. - The group emphasizes energy-saving measures and has adopted various initiatives to reduce resource consumption and emissions[163]. - Stakeholder engagement is prioritized, with communication channels established to address concerns from employees, investors, customers, suppliers, and government agencies[155]. - The group recognizes the importance of stakeholder expectations in formulating operational strategies and ESG measures[155]. Environmental Performance Metrics - Total greenhouse gas emissions decreased from 3,440.45 tons CO2 equivalent in FY2018 to 2,868.01 tons CO2 equivalent in FY2019, a reduction of 572.44 tons or 16.64%[168]. - The density of total greenhouse gas emissions per employee improved from 53.76 tons CO2 equivalent/employee in FY2018 to 43.45 tons CO2 equivalent/employee in FY2019[168]. - Solid waste generated decreased from 21,032 tons in FY2018 to 12,941.80 tons in FY2019, a reduction of 8,090.20 tons or 38.47%[175]. - Wastewater generated decreased from 54,139 tons in FY2018 to 35,770 tons in FY2019, a reduction of 18,369 tons or 33.93%[180]. - The company has implemented various measures to reduce paper usage and promote recycling among employees[177]. - The company has established guidelines for the management and disposal of hazardous waste, although no hazardous waste was generated in FY2019[169]. - The company emphasizes waste reduction, reuse, and recycling in its environmental procedures[170]. - The company has taken steps to ensure wastewater treatment complies with the Water Pollution Control Ordinance (WPCO) before discharge[178]. - In the fiscal year 2019, gasoline consumption decreased by 2,453 liters or 3.80% to 62,097 liters from 64,550 liters in 2018[192]. - Diesel consumption reduced by 162,115 liters or 13.65% to 1,025,225 liters in 2019 from 1,187,340 liters in 2018[192]. - Acetylene consumption significantly decreased by 12.61 tons or 72.06% to 4.89 tons in 2019 from 17.5 tons in 2018 due to a reduction in welding projects[192]. - Total water consumption decreased by 15,496.40 cubic meters or 24.65% to 47,374.60 cubic meters in 2019 from 62,871 cubic meters in 2018[197]. - The energy consumption density for electricity was 125.30 kWh per employee in 2019, up from 117.42 kWh per employee in 2018[189]. - Gasoline density per employee was 940.86 liters in 2019, down from 1,008.59 liters in 2018[189]. - Diesel density per employee decreased to 15,533.71 liters in 2019 from 18,552.19 liters in 2018[189]. - The company implemented various energy-saving measures, including the use of energy-efficient LED lights and encouraging employees to utilize natural light[188]. - The company has adopted a policy to encourage employees to use public transportation to reduce carbon emissions[186]. - The company has been actively promoting water conservation practices across all operational sites[193].
中国新消费集团(08275) - 2019 - 年度财报