Financial Performance - Total revenue increased from approximately HKD 277.6 million for the year ended March 31, 2019, to approximately HKD 404.0 million for the year ended March 31, 2020, representing a growth of about 45.5%[7] - Profit attributable to owners of the company rose from approximately HKD 18.2 million for the year ended March 31, 2019, to approximately HKD 19.5 million for the year ended March 31, 2020, an increase of about 7.1%[7] - The cost of sales increased from approximately HKD 238.1 million for the year ended March 31, 2019, to approximately HKD 358.2 million for the year ended March 31, 2020, representing an increase of about 50.4%[14] - Gross profit rose from approximately HKD 39.5 million to approximately HKD 45.8 million, but the overall gross margin decreased from about 14.2% to approximately 11.3% due to lower project gross margins[16] - Administrative expenses increased by approximately HKD 4.4 million or 34.6% from about HKD 12.7 million to approximately HKD 17.1 million, primarily due to business expansion and compliance costs[18] - Financing costs rose from approximately HKD 1.7 million to about HKD 2.4 million, an increase of 41.2%, mainly due to increased use of loans for trade payables and factoring[19] - Income tax expenses increased by approximately HKD 0.2 million or 5.1% from about HKD 3.9 million to approximately HKD 4.1 million, attributed to an increase in profit before tax from about HKD 22.1 million to approximately HKD 23.6 million[20] - The current ratio remained stable at approximately 1.7 times as of March 31, 2019, and March 31, 2020, with bank borrowings increasing from approximately HKD 44.6 million to about HKD 53.2 million[24] - The company's distributable reserves as of March 31, 2020, amounted to approximately HKD 26.9 million, a decrease from HKD 32.5 million in 2019[168] Project Acquisition and Management - The company secured 22 new projects with a total original contract value of approximately HKD 294.7 million for the year ended March 31, 2020, compared to 18 projects with a value of approximately HKD 265.8 million in the previous year[11] - The company completed three projects for international luxury brands with a total original contract value of approximately HKD 88.3 million during the fiscal year ended March 31, 2020[13] - The company aims to strengthen its market position and expand its market share by securing more contracts in maintenance, renovation, and extension works[12] - The impact of the COVID-19 pandemic and social unrest in Hong Kong has led to increased operational costs and uncertainty in new project acquisitions[11] COVID-19 Response - The management team has temporarily reduced their salaries by 30% starting from April 1, 2020, in response to the challenges posed by the COVID-19 pandemic[12] - The company will continue to monitor the developments of the COVID-19 pandemic and actively respond to its impacts on business operations[12] - The company has implemented action plans to mitigate the impact of COVID-19, including close communication with suppliers and temperature checks for workers before entering construction sites[193] - The board of directors is actively assessing and responding to the effects of the pandemic on the company's financial condition[193] - The financial performance of the company is expected to be impacted by uncertainties in the supply of construction materials and a decline in residential renovation demand due to COVID-19[193] Environmental Impact - For the year ended March 31, 2020, total greenhouse gas emissions amounted to 88 tons, a decrease of 21.4% from 112 tons in 2019[100] - The total construction and demolition waste generated was 7,994 tons, an increase of 22.4% from 6,533 tons in 2019[100] - Total electricity consumption was 52,112 kWh, down 31% from 75,606 kWh in 2019[102] - The company has implemented measures to reduce environmental impact, including using ultra-low sulfur diesel and noise emission labeled equipment[99] - The company has committed to environmental sustainability by implementing green office practices and minimizing operational impacts on the environment[152] Corporate Governance - The board of directors is responsible for corporate governance functions, including the formulation and review of governance policies and compliance with legal regulations[58] - The audit committee consists of three independent non-executive directors, ensuring compliance with GEM listing rules and monitoring the integrity of financial reports[65] - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Safety Compliance Committee[64] - The company emphasizes the importance of continuous professional development for all directors[63] - The company has established a risk management framework to identify and manage risks at an acceptable level to achieve strategic goals[83] Employee and Workforce Management - The company employed 52 staff as of March 31, 2020, compared to 40 staff in the previous year, with total employee costs around HKD 23.1 million[35] - Employee headcount increased from 40 in 2019 to 52 in 2020, representing a 30% growth[105] - Female employees accounted for 40% of the workforce in 2020, up from 35% in 2019[105] - Employee turnover rate significantly decreased from 38% in 2019 to 10% in 2020[106] - Total training hours for employees rose from 522 in 2019 to 725 in 2020, an increase of approximately 39%[117] Safety and Compliance - The company has maintained compliance with OHSAS 18001 standards since 2011, ensuring high safety management standards[113] - No significant health and safety non-compliance cases were reported for the year ending March 31, 2020[114] - The company has established a safety compliance committee to review safety policies and promote health awareness[109] Shareholder Information - The company reported a mid-term dividend of HKD 0.5 per share, totaling HKD 4.0 million, and proposed a final dividend of HKD 0.25 per share, amounting to approximately HKD 2.0 million[154] - The annual general meeting is scheduled for August 13, 2020, with a suspension of share transfer registration from August 10 to August 13, 2020[158] - The company’s board of directors will consider cash position and overall business conditions when declaring dividends[155] Risk Management - The company emphasizes the importance of risk management practices to mitigate operational and financial risks, including low profit margins and reliance on subcontractors[149] - The company has implemented a three-tier risk management approach to effectively identify, assess, and respond to risks[83]
CHI HO DEV(08423) - 2020 - 年度财报