Financial Performance - For the year ended March 31, 2020, the group's revenue was approximately HKD 84.6 million, a decrease of about 21.9% from approximately HKD 108.3 million for the year ended March 31, 2019[14]. - The gross profit for the year ended March 31, 2020, was approximately HKD 3.7 million, down from approximately HKD 28.9 million for the year ended March 31, 2019[14]. - The loss attributable to owners of the company for the year ended March 31, 2020, was approximately HKD 16.5 million, compared to a profit of approximately HKD 1.9 million for the year ended March 31, 2019[14]. - The pre-tax loss for the year ended March 31, 2020, was approximately HKD 19.1 million, a decrease of about HKD 23.7 million from a pre-tax profit of approximately HKD 4.6 million for the year ended March 31, 2019[18]. - Revenue decreased by approximately 21.9% from HKD 108.3 million for the year ended March 31, 2019, to HKD 84.6 million for the year ended March 31, 2020, primarily due to the completion of four maintenance projects and the negative impact of social unrest[53]. - The company recorded a loss of approximately HKD 16.5 million for the year ended March 31, 2020, compared to a profit of HKD 1.9 million for the previous year, attributed to decreased revenue and increased construction costs[62]. - The group reported a net loss of HKD 16,525,000 and an operating cash outflow of HKD 13,391,000 for the year ended March 31, 2020[134]. Challenges and Market Conditions - The group faced challenges due to public protests and the COVID-19 pandemic, which adversely affected construction activities[17]. - The company has observed a decrease in the number of industry tenders, yet continues to focus on developing its maintenance and civil engineering business in Hong Kong[51]. - The increase in construction costs, salaries, and other allowances contributed to the financial losses reported[18]. Governance and Board Structure - The board consists of six members, including three executive directors and three independent non-executive directors[23]. - The company emphasizes the importance of independent directors in strategic decision-making and performance evaluation[33]. - The company has a structured board with clear roles and responsibilities to ensure effective governance[23]. - The company has appointed three independent non-executive directors, ensuring that independent directors constitute at least one-third of the board[105]. - The audit committee is composed of three independent non-executive directors, ensuring compliance with corporate governance standards[116]. - The company has established three board committees: the audit committee, remuneration committee, and nomination committee, each with defined responsibilities[115]. Management and Executive Team - Mr. Xia, the Chairman and Executive Director, has over 17 years of experience in road and highway management and maintenance[24]. - Mr. Ye, the CEO and Executive Director, has over 24 years of experience in the civil engineering industry[27]. - Mr. Han, an Executive Director, has over 20 years of experience in business management and marketing[29]. - The executive team is focused on overall strategy management and business development[24][27]. Financial Position and Assets - As of March 31, 2020, the company's current assets net value was approximately HKD 53.4 million, down from HKD 74.4 million the previous year, with cash and cash equivalents at HKD 11.5 million[63]. - The company's total bank borrowings, including overdrafts and lease liabilities, amounted to approximately HKD 23.2 million as of March 31, 2020, compared to HKD 22.9 million the previous year[63]. - The group had current bank and other borrowings of HKD 12,000,000 and trade and other payables of HKD 10,510,000, with cash and bank balances of HKD 11,525,000[134]. Dividend Policy - The board does not recommend the payment of a final dividend for the year ended March 31, 2020[14]. - The company has adopted a dividend policy to guide the board in determining whether to declare and pay dividends, with no predetermined payout ratio[129]. - The company will continue to review its dividend policy and reserves the right to update or modify it at any time[129]. Risk Management and Compliance - The board believes that good corporate governance is essential for maintaining stakeholder trust and creating long-term value[90]. - The company has established risk management procedures and guidelines to ensure compliance across various departments[133]. - The board is responsible for assessing the effectiveness of risk management and internal control systems, which aim to manage risks rather than eliminate them[130]. - The company has maintained compliance with applicable laws and regulations in all material aspects during the reporting period[155]. Shareholding and Options - As of the report date, the directors and senior management hold 201,300,000 shares, representing 41.94% of the company's equity[181]. - The maximum number of shares that may be issued upon the exercise of options granted under the share option scheme shall not exceed 10% of the total issued shares, equivalent to 480,000,000 shares as of the report date[169]. - Each participant's options granted under the share option scheme shall not exceed 1% of the issued shares within any 12-month period unless approved by shareholders[170].
广骏集团控股(08516) - 2020 - 年度财报