Financial Performance - For the year ended March 31, 2019, the group's revenue was approximately HKD 108.3 million, an increase of about 18.0% from approximately HKD 91.8 million for the year ended March 31, 2018, primarily due to a new road management and maintenance project[15]. - The gross profit for the year ended March 31, 2019, was approximately HKD 28.9 million, up from approximately HKD 25.8 million for the year ended March 31, 2018, attributed to the increase in revenue[15]. - The profit attributable to owners of the company decreased to approximately HKD 1.9 million for the year ended March 31, 2019, down from approximately HKD 6.9 million for the year ended March 31, 2018, mainly due to increased impairment losses on contract assets and trade receivables[15]. - The group recorded a pre-tax profit of approximately HKD 4.6 million for the year ended March 31, 2019, a decrease from approximately HKD 10.1 million for the year ended March 31, 2018, primarily due to listing expenses of HKD 8.3 million incurred during the reporting period[18]. - Revenue increased by approximately 18.0% from HKD 91.8 million for the year ended March 31, 2018, to HKD 108.3 million for the year ended March 31, 2019, primarily due to a new maintenance project contributing HKD 39.7 million[55]. - Cost of sales rose by approximately 20.5% from HKD 65.9 million to HKD 79.4 million, mainly attributed to the commencement of a new maintenance project[56]. - Gross profit increased from HKD 25.8 million to HKD 28.9 million, while gross margin decreased from 28.2% to 26.7% due to a higher proportion of self-performed contracts[57]. - Administrative expenses surged by approximately 95.2% from HKD 6.2 million to HKD 12.1 million, driven by increased employee costs and higher director remuneration due to an increase in the number of directors[62]. - Financing costs increased by approximately 69.4% from HKD 333,000 to HKD 564,000, primarily due to increased bank borrowings[63]. - Profit for the year decreased from HKD 6.9 million to HKD 1.9 million, mainly due to increased impairment losses on contract assets and trade receivables[65]. Corporate Governance - The board of directors is committed to maintaining high standards of corporate governance, ensuring transparency and accountability to stakeholders[89]. - The company has adopted the GEM Listing Rules regarding securities trading compliance and confirmed that all directors adhered to these rules during the relevant period[91]. - The board consists of three executive directors and three independent non-executive directors, ensuring a strong element of independent judgment[104]. - The company believes that good corporate governance practices are essential for maintaining shareholder trust and creating long-term value[89]. - The board of directors has a fixed initial term of three years from the listing date, with a minimum notice period of three months for termination, except for Mr. Han Shengjun, whose term is one year starting from April 29, 2019[106]. - The company has established a risk management and internal control system aimed at managing risks associated with achieving business objectives[123]. - The board of directors is responsible for formulating business strategies and monitoring the group's performance[108]. - The company has implemented a disclosure policy to guide the handling of confidential information and monitoring of information disclosure[126]. - The board confirmed that the consolidated financial statements for the year ending March 31, 2019, were prepared to reflect a true and fair view of the company's affairs[127]. - The company has received annual independence confirmations from its independent non-executive directors[182]. Management and Directors - The board consists of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors[23]. - Mr. Xia, the Chairman and Executive Director, has over 16 years of experience in road and highway management and maintenance[27]. - Mr. Ye, the CEO and Executive Director, has over 23 years of experience in the civil engineering industry[28]. - Mr. Han, appointed as an Executive Director in April 2019, has over 20 years of experience in corporate management and marketing[29]. - Mr. Liu, the Non-Executive Director, has held various positions in banking and has been a director since December 2017[30]. - Ms. Tang, an Independent Non-Executive Director, is the chair of the audit committee and has extensive experience in accounting and auditing[32]. - Mr. Yu, also an Independent Non-Executive Director, has a background in finance and has held senior positions in various financial institutions[35]. - The management team is responsible for overall strategy management and development, overseeing operations, business development, human resources, finance, and administration[24][28]. - The company aims to leverage the extensive industry knowledge and relationships of its directors to enhance business growth and operational efficiency[27][29]. - The company emphasizes the importance of independent judgment in strategy, performance, resources, and code of conduct matters[32][35]. Future Prospects and Strategies - The company remains cautiously optimistic about its prospects for 2020, acknowledging challenges in effectively monitoring subcontractor performance[19]. - The company plans to implement strategies such as purchasing additional machinery and equipment, enhancing manpower, and applying for inclusion in specialized contractor lists to achieve its goals[19]. - The company is focused on achieving the milestones outlined in its prospectus since its listing on October 15, 2018[82]. Shareholder Information - The company did not recommend a final dividend for the year ending March 31, 2019, and confirmed an interim dividend of HKD 7 million for the year ending September 30, 2017[84]. - The company has not granted any stock options under the stock option plan as of March 31, 2019[153]. - The maximum number of shares that may be issued upon the exercise of all unexercised stock options granted under the stock option plan shall not exceed 30% of the total issued shares[156]. - The total number of shares that may be issued upon the exercise of stock options granted under the stock option plan shall not exceed 10% of the total issued shares, equivalent to 480,000,000 shares[156]. - Directors and senior executives hold a total of 334,800,000 shares, representing 69.75% of the company's equity[169]. - Major shareholder Junsheng Holdings Limited owns 334,800,000 shares, representing 69.75% of the company's equity[176]. - The largest customer accounted for approximately 36.6% of the total revenue for the year ended March 31, 2019[195]. - The top five customers contributed about 88.3% of the total revenue for the same period[195]. - The largest supplier represented approximately 7.5% of the cost of sales[196]. - The top five suppliers accounted for around 19.6% of the cost of sales[196]. Risk Management - The company has established multiple risk management procedures and guidelines, ensuring compliance across key business processes and functions[124]. - As of March 31, 2019, the board reviewed the effectiveness of the risk management and internal control systems and deemed them adequate and effective[124]. - The company does not currently have an internal audit unit, as the board believes it is not cost-effective given the current operational scale[124]. Related Party Transactions - The company reported related party transactions with Jia Cheng (China) Limited, totaling approximately HKD 482,000 and HKD 243,000 for the years ending March 31, 2018, and 2019, respectively[151].
广骏集团控股(08516) - 2019 - 年度财报