Revenue and Projects - The total revenue of Polyfair Holdings Limited increased by approximately HK$14.0 million or 6.5%, from approximately HK$215.8 million for the year ended March 31, 2019, to approximately HK$229.8 million for the year ended March 31, 2020[18]. - The increase in revenue was primarily due to undertaking more sizeable projects, particularly the Kai Tak KT1K project, which had an awarded contract sum of approximately HK$200 million[18]. - Revenue from commercial properties projects was approximately HK$164.2 million, representing approximately 71.5% of the Group's total revenue, while revenue from residential properties projects was approximately HK$65.6 million, representing approximately 28.5%[38]. - The Group had seven projects in progress with a total original contract sum of approximately HK$440.3 million, of which approximately HK$110.5 million was recognized as revenue during the reporting period[28]. - Four new projects were awarded during the reporting period with a total contract sum of approximately HK$283.0 million, all of which are now at the commencement stage[29]. Financial Performance - The Group's gross profit increased by approximately HK$5.1 million from approximately HK$12.4 million for the year ended 31 March 2019 to approximately HK$17.5 million for the year ended 31 March 2020, with a gross profit margin increase from approximately 5.7% to approximately 7.6%[44]. - The cost of services increased to approximately HK$212.3 million for the year ended 31 March 2020, representing an increase of approximately 4.4% from approximately HK$203.4 million for the year ended 31 March 2019[42]. - Profit for the year ended 31 March 2020 was approximately HK$3.1 million, compared to a loss of approximately HK$6.6 million for the year ended 31 March 2019, driven by increased gross profit and reduced administrative expenses[53]. - Other income, gains, and losses decreased from approximately HK$1.6 million for the year ended 31 March 2019 to approximately HK$0.3 million for the year ended 31 March 2020, primarily due to a decrease in fair value gains from life insurance policies[48]. - Impairment losses decreased from approximately HK$1.8 million for the year ended 31 March 2019 to approximately HK$0.6 million for the year ended 31 March 2020[49]. Operational Insights - The Group remains optimistic about its core business despite the economic slowdown, focusing on expanding its customer base and achieving sustainable growth[35]. - The recent outbreak of COVID-19 is expected to affect the Group's business, and the Board is actively assessing its potential impact[36]. - The number of new residential units in Hong Kong is expected to increase from 13,643 in 2019 to 20,854 in 2020, driving demand for façade and curtain wall works[30]. - Office completions in Hong Kong were 266,900 m² in 2019, representing a rise of 49% from 2018, with 90% of completions in non-core districts[31]. Corporate Governance - The Company has complied with the applicable code provisions as set out in the Corporate Governance Code for the year ended 31 March 2020[141]. - The Board currently comprises six Directors, including three executive Directors and three independent non-executive Directors[150]. - The Company adopted a code of conduct regarding securities transactions by the Directors, complying with the Required Standard[142]. - The Company established written guidelines for employees likely to possess unpublished price-sensitive information, with no incidents of non-compliance noted[144]. - The Company will enhance its corporate governance practices appropriate to the operation and growth of the business[141]. Use of Proceeds - The Group raised gross proceeds of approximately HK$56 million through the share offer upon listing, with net proceeds of approximately HK$28.2 million after deducting listing expenses[90]. - Approximately 51.4% of the net proceeds, or about HK$14.5 million, will be used to strengthen the financial position for new business opportunities[98]. - Approximately 39.8% of the net proceeds, or about HK$11.2 million, will be allocated to expanding operational teams[98]. - Approximately 8.8% of the net proceeds, or about HK$2.5 million, will be used for working capital and other general corporate purposes[98]. - Total planned use of net proceeds amounted to HK$28.2 million, with actual use also at HK$28.2 million[101]. Staff and Management - The Group employed 87 staff as of March 31, 2020, maintaining the same number as in 2019[80]. - Total staff cost, including Directors' emoluments, was approximately HK$39.4 million for the year ended March 31, 2020, compared to HK$36.1 million in 2019, reflecting an increase of about 9.1%[80]. - Dr. Lung Cheuk Wah has over 30 years of professional experience in company secretary, accounting, and finance[118]. - Mr. Man Yun Yee has approximately 41 years of experience in auditing, accounting, and management[122]. - Mr. Wong Chi Kan Johnny has over 30 years of experience in the construction and engineering industry in Hong Kong[129]. Financial Position - Cash and bank balances decreased from approximately HK$14.8 million as at 31 March 2019 to approximately HK$8.1 million as at 31 March 2020, primarily due to cash used in daily operations and repayment of bank borrowings[61]. - The current ratio remained stable at 1.4 times as at 31 March 2020, while the gearing ratio increased from approximately 45.1% to approximately 46.4%[64]. - As of March 31, 2020, the Group's issued share capital was HK$8.0 million, with 800,000,000 ordinary shares issued at a par value of HK$0.01 each[72].
宝发控股(08532) - 2020 - 年度财报