Financial Performance - Total revenue decreased by approximately HKD 122.3 million or 30.3% to approximately HKD 281.7 million for the year ended March 31, 2021, compared to approximately HKD 404.0 million for the previous year[7] - Profit attributable to the owners of the company increased by approximately HKD 1.9 million or 9.7% to approximately HKD 21.4 million for the year ended March 31, 2021, compared to approximately HKD 19.5 million for the previous year[7] - Revenue decreased from approximately HKD 404.0 million for the year ended March 31, 2020, to approximately HKD 281.7 million for the year ended March 31, 2021, a decline of about 30.3%[15] - Cost of sales decreased from approximately HKD 358.2 million to approximately HKD 242.2 million, a decline of about 32.4%[16] - Gross profit decreased from approximately HKD 45.8 million to approximately HKD 39.4 million, while the overall gross margin increased from approximately 11.3% to approximately 14.0%[17] - Other income increased from approximately HKD 150,000 to approximately HKD 2.3 million, primarily due to subsidies received under the Employment Support Scheme[18] - Administrative expenses decreased from approximately HKD 17.1 million to approximately HKD 12.5 million, a reduction of about 26.9%[20] - Financing costs decreased from approximately HKD 2.4 million to approximately HKD 1.9 million, a decline of about 20.8%[21] - Income tax expenses decreased from approximately HKD 4.1 million to approximately HKD 3.6 million, a reduction of about 12.2%[22] - Current ratio improved from approximately 1.7 times to approximately 1.9 times[24] Project Management and Business Development - The company secured 60 projects generating revenue for the year ended March 31, 2021, compared to 44 projects in the previous year[12] - The company obtained 30 new projects with a total original contract value of approximately HKD 340.6 million for the year ended March 31, 2021, compared to 22 projects with a value of approximately HKD 294.7 million in the previous year[12] - The company focuses on project management, procurement, and quality control of works executed by employees and subcontractors[11] - The company remains cautiously optimistic about the overall business outlook despite the pressures from the COVID-19 pandemic[8] - The company plans to continue providing integrated services in maintenance, renovation, and site preparation to leverage its competitive advantages[8] Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM Listing Rules Appendix 15 during the fiscal year ending March 31, 2021[38] - The board consists of five members, including two executive directors and three independent non-executive directors[40] - The chairman and CEO roles are currently held by Mr. Leung Ka Ho, which the board believes enhances strategic efficiency[46] - The board has held four meetings during the fiscal year, with all directors attending each meeting[52] - The company has implemented a board diversity policy, considering various measurable aspects such as gender, age, and professional experience[48] - The nomination committee reviews the board composition annually to ensure the effectiveness of the diversity policy[50] - The company has established a code of conduct for directors' securities transactions, adhering to GEM Listing Rules standards[39] - The board is responsible for maintaining high levels of corporate governance, including policy formulation and compliance monitoring[44] - All directors have access to the company secretary's advice and services to ensure compliance with procedures and applicable regulations[55] - The board will review the need to appoint a suitable candidate for the CEO role if necessary[46] Risk Management and Internal Control - The company has a structured approach to risk management and internal control systems, ensuring effective oversight by the Audit Committee[66] - The company has established a risk management and internal control framework aimed at identifying and managing risks at an acceptable safety level[78] - The company has implemented a three-tier risk management approach to identify, analyze, assess, mitigate, and respond to risks[78] - The Audit Committee is responsible for reviewing the integrity of the company's financial reports, including accounting policies and significant judgments[63] - The group’s internal controls for recognizing contract revenue were evaluated and found to be significant for the financial statements[191] Environmental and Social Responsibility - The total greenhouse gas emissions for the year ended March 31, 2021, were 73 tons, a decrease of 17% from 88 tons in 2020[95] - The total construction and demolition waste generated was 4,975 tons, down 37% from 7,994 tons in 2020[95] - The total electricity consumption was 38,844 kWh, a reduction of 25% compared to 52,112 kWh in 2020[97] - The company has achieved ISO 14001 certification for its environmental management system, demonstrating its commitment to minimizing environmental impact[98] - The company has implemented measures to reduce resource consumption, including encouraging employees to turn off lights and appliances when not in use[96] - The group actively participates in community investment through charitable donations and support for education and environmental protection activities[116] Employee Management and Development - The employee turnover rate decreased to 2% in 2021 from 10% in 2020, indicating improved employee retention[101] - The company employed 54 staff members in 2021, an increase from 52 in 2020, with a gender distribution of 43% female and 57% male[100] - The total training hours for employees in 2021 were 625, with 67 hours for female employees and 558 hours for male employees, showing a focus on employee development[109] - The group emphasizes the importance of employee development by allocating sufficient resources for training and encouraging participation in both internal and external training programs[108] Compliance and Legal Matters - The company has confirmed compliance with the minimum public float requirements as per GEM listing rules[181] - The company did not enter into any related party transactions that were not exempt under GEM listing rules during the fiscal year[180] - There are no significant transactions or contracts involving directors or their related entities that could pose a conflict of interest[172] - The company has complied with relevant laws and regulations that significantly impact its business and operations[141] Shareholder Information - The company proposed a final dividend of HKD 0.25 per share, totaling HKD 2.0 million, subject to shareholder approval at the upcoming annual general meeting[148] - The company’s board of directors considers cash position and overall business conditions when determining dividend payments[149] - As of March 31, 2021, the company's distributable reserves amounted to approximately HKD 23.4 million, a decrease from HKD 26.9 million in 2020[162] - The largest customer contributed 16.7% of total revenue, while the top five customers combined accounted for 56.4%[164] - The largest supplier represented 18.1% of the cost of sales, with the top five suppliers together making up 43.5%[164] Audit and Financial Reporting - The company’s financial statements were audited for the year ended March 31, 2021[6] - The external auditor's fees for statutory audit services amounted to HKD 1,100,000 for 2021, a decrease from HKD 1,150,000 in 2020[80] - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, reflecting a true and fair view of the group's financial position[186] - The auditor assessed the qualifications, capabilities, and objectivity of the valuation expert[193] Corporate Structure and Changes - The company has undergone a corporate restructuring to prepare for its listing on the GEM, which was completed on November 11, 2016[139] - The company primarily engages in investment holding, with no significant changes in the nature of its main business during the year[140] - The company has established a stock option plan for directors and employees as part of its compensation strategy[171] - The initial term for independent non-executive directors is three years, subject to renewal unless terminated with a six-month notice[167]
CHI HO DEV(08423) - 2021 - 年度财报