Financial Performance - The group recorded revenue of approximately HKD 52.4 million for the fiscal year ending March 31, 2021, a decrease of about 5.1% from approximately HKD 55.2 million in the previous fiscal year[7]. - The group achieved a profit before tax of approximately HKD 8.5 million, an increase of about 26.0% from approximately HKD 6.8 million in the previous fiscal year, primarily due to income from the anti-epidemic fund subsidy program amounting to approximately HKD 1.5 million[7]. - The company's revenue for the fiscal year 2021 decreased by approximately 5.1% to about HKD 52.4 million, down from approximately HKD 55.2 million in fiscal year 2020[19]. - The cost of sales and services for fiscal year 2021 was approximately HKD 32.8 million, a decrease of about 7.3% from HKD 35.4 million in fiscal year 2020[20]. - The gross profit for fiscal year 2021 was approximately HKD 19.5 million, with a gross margin of about 37.3%, compared to HKD 19.8 million and 35.9% in fiscal year 2020[21]. - Other income increased to approximately HKD 2.3 million in fiscal year 2021 from HKD 0.3 million in fiscal year 2020, primarily due to HKD 1.5 million from the anti-epidemic fund and HKD 0.5 million from the sale of properties[22]. - Administrative expenses rose to approximately HKD 12.5 million in fiscal year 2021 from HKD 10.6 million in fiscal year 2020, mainly due to performance bonuses of about HKD 3.3 million paid to directors and employees[23]. - Financing costs decreased by approximately 39.1% to about HKD 0.4 million in fiscal year 2021 from HKD 0.7 million in fiscal year 2020, attributed to reduced financial liabilities under tower crane financing leases[24]. - The total profit and comprehensive income for fiscal year 2021 was approximately HKD 4.6 million, up from HKD 1.1 million in fiscal year 2020, mainly due to increased other income and reduced income tax expenses[25]. - Capital expenditures for fiscal year 2021 totaled approximately HKD 22.0 million, down from HKD 37.4 million in fiscal year 2020, with a significant portion allocated to the purchase of additional tower cranes and generators[26]. - As of March 31, 2021, the company had cash and cash equivalents of approximately HKD 13.8 million, down from HKD 22.5 million in fiscal year 2020[27]. - The company did not declare or propose any dividends for the fiscal year 2021[75]. Business Strategy and Market Outlook - The company anticipates continued challenges in the operating environment due to the recession in the Hong Kong construction market caused by COVID-19[8]. - The board plans to strengthen the core business position and adopt a proactive approach to bidding for new projects to enhance long-term profitability and shareholder value[8]. - The group aims to explore other potential investment opportunities to diversify its business and create new revenue sources[9]. - The demand for temporary cranes and tower cranes is expected to remain strong in the coming years, driven by the increasing application for public housing in Hong Kong[13]. - The company is actively seeking other business opportunities in the Hong Kong construction industry to create sustainable returns for shareholders[16]. - The company is focused on expanding its market presence in the crane rental sector through strategic investments and acquisitions[42]. - The company has diversified its revenue sources by acquiring six tower cranes to capture market demand for tower crane rental services[42]. Corporate Governance - The company’s board consists of ten directors, including four executive directors, two non-executive directors, and four independent non-executive directors[45]. - The company’s executive director and CEO, Mr. Tang Hing Keung, has over 20 years of experience in the crane and tower crane industry[47]. - The company’s operational strategy includes enhancing compliance and overall management oversight[54]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee various aspects of governance[162]. - The board of directors confirmed the independence of all independent non-executive directors as per GEM Listing Rules[94]. - The company emphasizes the importance of good corporate governance elements in its management structure and internal controls[142]. - The company has complied with all applicable provisions of the corporate governance code as per GEM listing rules for the fiscal year 2021[133]. - The board is responsible for the corporate governance functions as outlined in the corporate governance code, including the nomination process and standards for directors[176]. Shareholder Information - The company has a significant shareholder, Xingji, which holds a 30.0% stake, with Mr. Tang Xingqiang and Ms. Qu Fengyi owning 90% and 10% of Xingji, respectively[104]. - Ms. Hu Lanying holds 93,688,000 shares, representing approximately 23.42% of the total issued shares[104]. - Mr. Tang Xingqiang and Ms. Qu Fengyi each hold 120,000,000 shares, accounting for 30.0% of the issued shares[99]. - The company has not repurchased any of its listed securities during the fiscal year 2021 or thereafter[88]. - The company has not disclosed any tax relief available to shareholders due to shareholding[137]. - The company has adopted a shareholder communication policy to ensure equal and timely access to information for shareholders[198]. Risk Management and Compliance - The financial performance and key risk factors affecting the company are detailed in the annual report, with no significant events impacting the company since the end of the fiscal year 2021[78]. - The company confirmed compliance with all applicable laws and regulations in Hong Kong that have a significant impact on its operations during the fiscal year 2021[85]. - The company has established procedures for the immediate disclosure of inside information as required by the Securities and Futures Ordinance[191]. - The board has assessed the effectiveness of the risk management and internal control systems, which are designed to manage rather than eliminate risks[188]. Audit and Remuneration - The independent auditor for the fiscal year ending March 31, 2021, was Tianji Hong Kong CPA Limited, which has been appointed since March 1, 2019[139]. - The Audit Committee was established on February 23, 2017, and includes four independent non-executive directors[164]. - The Audit Committee held four meetings in the fiscal year 2021, reviewing the group's annual consolidated financial statements and internal controls[166]. - The Remuneration Committee held five meetings in the fiscal year 2021 to review and recommend matters related to the remuneration of directors and senior management[169]. - The remuneration details for directors in the fiscal year 2021 are included in the financial statements, with one senior management member earning between HKD 0 to 1,000,000[181]. Employee and Management Information - The company employed 37 full-time employees as of March 31, 2021, with total employee costs of approximately HKD 15.6 million, including performance bonuses of about HKD 3.3 million[38]. - Continuous professional development courses were provided to all directors during the fiscal year 2021[152]. - Each director received formal and comprehensive onboarding training to understand their responsibilities and the company's operations[152]. Charitable Contributions - Charitable donations made by the company reached HKD 104,000 in the fiscal year 2021, compared to zero in the previous fiscal year[77].
兴铭控股(08425) - 2021 - 年度财报