Financial Performance - For the fiscal year ending March 31, 2019, the company reported a revenue decrease of approximately 6.5%, from HKD 69.1 million to HKD 64.6 million[11]. - The decline in revenue was primarily due to reduced income from structural and geotechnical engineering consulting services related to new property construction[13]. - Gross profit decreased by approximately HKD 6.7 million or 21.9%, from approximately HKD 30.5 million for the year ended March 31, 2018, to approximately HKD 23.8 million for the year ended March 31, 2019[16]. - The overall gross margin declined from approximately 44.1% for the year ended March 31, 2018, to approximately 36.8% for the year ended March 31, 2019[16]. - General and administrative expenses rose by approximately HKD 4.3 million or 30.3%, from approximately HKD 14.1 million for the year ended March 31, 2018, to approximately HKD 18.4 million for the year ended March 31, 2019[17]. - The company reported a loss of approximately HKD 0.4 million for the year ended March 31, 2019, compared to a profit of approximately HKD 2.1 million for the year ended March 31, 2018, representing a decrease of approximately HKD 2.5 million or 120.0%[22]. Market Outlook and Strategy - The company remains optimistic about the demand in the Hong Kong construction industry, despite global economic uncertainties[9]. - The management believes that the upcoming construction and maintenance of properties will be a key driver for the growth of the construction consulting industry in Hong Kong[12]. - The company plans to leverage the net proceeds from the share issuance to secure more consulting service contracts and strengthen its market position[12]. - The company aims to expand the types of consulting services offered to various clients[11]. - The management team is confident in its ability to compete effectively against industry peers due to its experienced management and established reputation[12]. - The company acknowledges the increasing market competition, particularly from competitors offering services at lower prices[13]. Employee and Operational Management - The total employee costs for the year ended March 31, 2019, were approximately HKD 43.6 million, up from approximately HKD 41.8 million for the year ended March 31, 2018[39]. - The company emphasizes the importance of recruiting skilled professionals to maintain its industry reputation and explore new business opportunities[9]. - The company is focused on strategic planning and overall business development, with a management team having extensive experience in the engineering industry[44][51]. - The company is actively involved in the daily management of its operations, ensuring effective execution of its business strategies[51]. Sustainability and ESG Initiatives - The board of directors emphasized the importance of sustainability initiatives, with plans to reduce carbon emissions by 30% by 2025[55]. - The environmental, social, and governance (ESG) report summarizes the group's initiatives, plans, and performance in sustainability[86]. - The group collects data related to ESG and prepares the ESG report, assisting in risk management evaluation[87]. - The company has a commitment to environmental, labor practices, and other ESG aspects, reviewing its performance regularly[87]. - The group has established appropriate and effective management policies and internal control systems regarding environmental, social, and governance matters as of March 31, 2019[96]. Corporate Governance - The company has a strong commitment to corporate governance, with independent non-executive directors overseeing key committees such as the remuneration and audit committees[68]. - The board of directors consists of six members, including three executive directors and three independent non-executive directors[181]. - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience[189]. - The board is responsible for significant decisions, including annual operating plans and major acquisitions[184]. - The company emphasizes transparency and accountability as essential for effective management and business growth[178]. Community Engagement and Social Responsibility - The company encourages employee participation in social and charitable activities to foster a positive work environment[126]. - The company emphasizes corporate social responsibility, encouraging employee participation in charitable activities to foster a sense of social responsibility[152]. - Stakeholder engagement includes communication channels such as annual general meetings, reports, and company websites to gather feedback and improve performance[93].
WAC HOLDINGS(08619) - 2019 - 年度财报