Financial Performance - Total revenue for the year ended March 31, 2019, increased by approximately HKD 4.6 million or 3.5% to approximately HKD 135.5 million compared to HKD 130.9 million for the year ended March 31, 2018[10]. - Shareholders' profit for the year remained stable at approximately HKD 3 million, unchanged from the previous year[10]. - Adjusted net profit decreased by approximately HKD 4.4 million or 59.5% to approximately HKD 3 million, down from approximately HKD 7.4 million in the previous year, primarily due to increased administrative expenses and higher financing costs[10]. - Total revenue increased by approximately HKD 4.6 million or 3.5% to approximately HKD 135.5 million for the year ended March 31, 2019, compared to approximately HKD 130.9 million for the previous year[17]. - Gross profit increased by approximately HKD 900,000 or 3.7% to approximately HKD 26.1 million, with a stable gross margin of approximately 19.3%[18][19]. - Net profit remained stable at approximately HKD 3 million, with adjusted net profit decreasing by approximately HKD 4.4 million or 59.5% to approximately HKD 3 million[26]. - Total assets increased to approximately HKD 188 million from approximately HKD 146.3 million, with total liabilities and equity at approximately HKD 89.7 million and HKD 98.3 million respectively[28]. - The debt-to-equity ratio increased from approximately 36.6% to approximately 54.7%, primarily due to a rise in bank borrowings exceeding the increase in total equity[31]. Business Operations - The group had 24 construction management projects and 4 consultancy projects contributing to revenue, compared to 26 construction management projects and 1 consultancy project in the previous year[14]. - The company aims to explore opportunities to expand its business into construction-related contracting services in Hong Kong, Macau, and other parts of China[11]. - The company faces challenges from high labor costs and material costs, as well as external macroeconomic slowdowns impacting future opportunities[11]. - The management team emphasizes the importance of managing project progress and costs amid intense competition in the construction industry[11]. - The company plans to adapt its business strategies to maintain sustainable development and seize long-term growth opportunities[11]. - The group’s experience in water circulation system design, procurement, and installation services positions it favorably against competitors[11]. Corporate Governance - The board consists of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse skill set and experience[45]. - The company has adopted a board diversity policy, considering factors such as skills, gender, age, and industry experience to ensure effective governance and strategy execution[50]. - The board held four meetings during the fiscal year ending March 31, 2019, to approve financial performance and review governance compliance[52]. - The company emphasizes competitive compensation packages to attract and retain high-quality employees, including performance-based bonuses and stock options[41]. - The board is committed to maintaining high corporate governance standards to enhance accountability and transparency for shareholders[43]. - The independent non-executive directors confirm their independence annually, ensuring compliance with GEM listing rules[45]. - The company has implemented a governance framework based on the GEM listing rules to regulate its business activities and decision-making processes[43]. - The company has established three committees: Audit, Remuneration, and Nomination, to oversee specific matters[61]. Environmental Impact - The total greenhouse gas emissions increased by 22.7% from 29.11 tons in 2017/18 to 35.74 tons in 2018/19[98]. - Indirect emissions from electricity usage rose by 22.7%, from 29.09 tons in 2017/18 to 35.71 tons in 2018/19[98]. - The company aims to reduce environmental impact and ensure compliance with relevant environmental laws and regulations[96]. - The company has implemented measures to minimize greenhouse gas emissions during construction projects[99]. - The company has established measures to minimize wastewater generation and has complied with relevant water pollution control regulations[105]. Employee Management - As of March 31, 2019, the group employed 37 staff members, with employee costs amounting to approximately HKD 17.3 million, an increase from HKD 14 million in 2018[41]. - The company emphasizes continuous learning and development, funding training programs for employees[124]. - Safety audits are conducted regularly, with no significant health and safety incidents reported during the period[121][122]. - The company has established a safe and pleasant working environment, strictly adhering to local labor laws and regulations[125]. - The company provides various employee benefits, including retirement and medical benefits, as well as training course funding[41]. Shareholder Relations - The company aims to provide stable and sustainable returns to shareholders through its dividend policy, which was adopted for the fiscal year ending March 31, 2019[78]. - The board of directors values communication with shareholders and presents independent resolutions for significant matters at the annual general meeting[82]. - The major shareholder, Harmony Asia International, holds 731,250,000 shares, representing 56.25% of the total shares[175]. - Another significant shareholder, Zhang Wei, holds 243,750,000 shares, which is 18.75% of the total shares[175]. Risk Management - The company has established a series of risk management policies and measures to identify key risks related to its business, industry, and market[75]. - An independent internal control consultant was appointed to review the internal control system, and recommendations for improvements were implemented based on the consultant's findings[76]. - The company emphasizes the importance of good internal control procedures to protect shareholder interests and has strict policies against unauthorized use of confidential information[75]. Market Position - Revenue from the top five customers accounted for approximately 96.9% of total revenue for the year ended March 31, 2019, compared to 95.8% in 2018[177]. - The largest customer contributed about 86.5% of total revenue for the year ended March 31, 2019, down from 87.8% in 2018[177]. - Procurement from the top five suppliers represented approximately 21.0% of total service costs for the year ended March 31, 2019, significantly down from 42.4% in 2018[177]. - The largest supplier accounted for about 11.0% of total service costs for the year ended March 31, 2019, compared to 38.9% in 2018[177].
浩柏国际(08431) - 2019 - 年度财报