Market Challenges and Opportunities - The group faced significant challenges in the Chinese real estate market, particularly due to a slowdown in recovery and pressure from rising interest rates imposed by the US Federal Reserve[22]. - The construction industry is experiencing intense competition, leading to thinner profit margins for the group[22]. - The group will actively seek new business and investment opportunities, including potential acquisitions or strategic partnerships, to enhance long-term profitability[22]. - The group remains optimistic about the future, believing in its resilience to navigate the complex market environment[22]. - The group will continue to carefully evaluate projects to ensure a balance between risk and return in the challenging operating environment of the Hong Kong real estate market[22]. - The company continues to monitor the Chinese market for potential improvements, recognizing it as an important market opportunity[23]. Financial Performance - The company's revenue decreased by approximately 22.2% from about HKD 116,100,000 for the year ended June 30, 2023, to about HKD 90,300,000 for the year ending June 30, 2024[24]. - Direct costs decreased by approximately 27.1% from about HKD 110,100,000 for the year ended June 30, 2023, to about HKD 80,300,000 for the year ending June 30, 2024[25]. - Gross profit increased by approximately 66.7% from about HKD 6,000,000 for the year ended June 30, 2023, to about HKD 10,000,000 for the year ending June 30, 2024, with a gross margin increase from approximately 5.2% to 11.1%[26]. - Other losses increased by approximately 161.1% from about HKD 3,600,000 for the year ended June 30, 2023, to about HKD 9,400,000 for the year ending June 30, 2024, primarily due to increased litigation losses[28]. - The company's administrative expenses increased by approximately 22.0% from about HKD 18,200,000 for the year ended June 30, 2023, to about HKD 22,200,000 for the year ending June 30, 2024[30]. - As of June 30, 2024, the company maintained a strong liquidity position with cash and bank balances of approximately HKD 17,100,000, down from HKD 45,500,000 as of June 30, 2023[31]. - The company's total assets as of June 30, 2024, were approximately HKD 136,400,000, a decrease from about HKD 144,900,000 as of June 30, 2023[31]. - The company had no outstanding interest-bearing borrowings as of June 30, 2024, maintaining a debt-to-equity ratio of zero[32]. Governance and Management - The management team emphasizes the importance of corporate governance, adhering to GEM listing rules to ensure transparency and accountability[56]. - The company has implemented new training programs for management, aimed at improving leadership skills and operational effectiveness[58]. - The board of directors has established clear performance metrics to monitor management effectiveness and strategic execution[57]. - The company is committed to maintaining compliance with legal and regulatory requirements, ensuring robust governance practices[58]. - The board consists of seven directors, including four executive directors and three independent non-executive directors[59]. - The company held 12 board meetings during the fiscal year ending June 30, 2024[65]. - All three independent non-executive directors confirmed their independence as per GEM listing rules[64]. - The company appointed new directors on January 12, 2024, and April 12, 2024, enhancing its governance structure[61]. - The company has adopted the GEM listing rules regarding the code of conduct for directors trading in securities[68]. - The independent non-executive directors have signed appointment letters for a term of two years starting from their respective appointment dates[62]. - The attendance record for board meetings shows full participation from the chairman and other executive directors[65]. - The company has ensured compliance with GEM listing rules regarding the composition of the board and audit committee[61]. - The board's independent element is strong, with independent non-executive directors making up at least one-third of the board[64]. - The company has maintained a robust governance framework, ensuring all directors understand their responsibilities[61]. - The company has established a continuous professional development program for all directors to enhance their knowledge and skills, with all directors attending at least one training course related to good corporate governance practices by June 30, 2024[69]. Risk Management and Compliance - The company has established a risk management framework involving the board, audit committee, and dedicated risk management team to oversee various operational risks[88]. - The board has conducted an annual review of the effectiveness of the risk management and internal control systems, confirming their adequacy and effectiveness[88]. - The company is committed to ensuring that all announcements contain accurate and non-misleading information regarding significant facts[89]. - The board confirms that there are no uncertainties that may cast significant doubt on the company's ability to continue as a going concern for the year ending June 30, 2024[91]. - The company has established procedures for shareholders to request special general meetings, requiring at least 10% of the voting rights to initiate such a meeting[93]. - The company has established multiple communication channels with shareholders, including annual general meetings and various reports, to ensure transparency and engagement[97]. - The company has implemented internal controls to prevent and detect fraud, with all employees trained in anti-corruption policies[148]. - The company has established a whistleblowing policy for stakeholders to report any misconduct or violations[148]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental sustainability, implementing measures to promote resource efficiency and reduce waste[50]. - The environmental, social, and governance (ESG) report complies with the GEM listing rules and emphasizes the importance of stakeholder engagement in the company's strategic planning[100]. - The company has a dedicated ESG team responsible for identifying, assessing, and managing ESG risks and issues, reporting regularly to the board[102]. - A stakeholder engagement process has been implemented, involving various methods such as surveys and meetings to gather input from employees, customers, investors, and suppliers[105]. - The company conducted a materiality assessment to identify significant ESG issues, utilizing stakeholder surveys to evaluate their relevance[106]. - The company is committed to sustainable development and has integrated ESG factors into its business decisions and daily operations[102]. - The board has overall responsibility for the company's green and sustainable development initiatives, supported by the ESG team[102]. - The company aims to reduce greenhouse gas emissions by 2% to 3% in the coming year[112]. - Total greenhouse gas emissions decreased from 33 metric tons CO2 equivalent in 2023 to 30 metric tons CO2 equivalent in 2024, a reduction of approximately 9.1%[116]. - The company successfully reduced construction waste by 2% in 2024 compared to the previous year[121]. - The company recycled 4.0 metric tons of paper, resulting in a reduction of 19.2 metric tons of greenhouse gas emissions[117]. - The company reported a total of 1,465 metric tons of construction waste in 2024, with a density of 47.26 metric tons per employee[118]. - Nitrogen oxides emissions remained stable at 0.40 kg in both 2023 and 2024[114]. - Sulfur oxides emissions decreased from 0.03 kg in 2023 to 0.02 kg in 2024, a reduction of approximately 33.3%[114]. - The company has not reported any significant violations of environmental laws and regulations during the reporting period[109]. - The company encourages employees to practice green driving and provides video conferencing facilities to reduce business travel emissions[112]. - The company has implemented measures to effectively manage wastewater discharge during construction projects[113]. - The company aims to reduce energy consumption by 2% to 3% in the coming year[125]. - Electricity consumption increased to 36,921 kWh in 2024, with a density of 1,191.00 kWh per employee, compared to 36,824 kWh and 1,022.89 kWh per employee in 2023[124]. - Gasoline consumption was 1,080 liters in 2024, with a density of 34.84 liters per employee, slightly down from 1,100 liters and 30.56 liters per employee in 2023[124]. - Water consumption increased by 2.74% in 2024, with a total of 375 cubic meters, compared to 365 cubic meters in 2023[125]. - The company has implemented a green management system to improve energy and resource efficiency and raise employee awareness[125]. Employee Management and Training - Employee turnover rate for males decreased to 9% in 2024 from 31% in 2023, while for females it increased to 21% from 7%[134]. - The company has 29 full-time employees and 2 part-time employees as of the end of the reporting period[131]. - The total number of trained employees in 2024 was 31, with a total training hours of 88[139]. - The percentage of trained employees remained at 100% for both 2024 and 2023[139]. - The average training hours per employee in 2024 was 3 hours, consistent with 2023[139]. - The company has implemented strict safety measures, with no significant violations of safety regulations reported in 2023[137]. - The company has a qualified safety personnel to monitor and implement safety plans[137]. - The company has committed resources to improve safety management and reduce risks on construction sites[137]. - The company emphasizes continuous employee training to enhance performance and loyalty[139]. Corporate Social Responsibility - The company is committed to corporate social responsibility, particularly in environmental protection and employee management[149]. - The company focuses on community investment, particularly in areas such as education, health, and environmental issues[158]. - The company donated approximately HKD 819,000 during the reporting period, compared to HKD 1,014,700 in 2023[149]. - The company has a zero-tolerance policy for child labor and forced labor, with no violations reported during the reporting period[140]. Shareholder and Financial Information - The company's distributable reserves amounted to approximately HKD 46,500,000 as of June 30, 2024[169]. - The company made charitable donations of approximately HKD 900,000 for the year ended June 30, 2024, compared to HKD 1,200,000 for the previous year[167]. - The total number of share options authorized under the 2024 Share Option Scheme was 79,594,000 as of June 30, 2024[171]. - Best Brain Investments Limited held 250,000,000 shares, representing 31.41% of the company's total issued share capital as of June 30, 2024[176]. - The company’s major shareholder, Gao Junxi, held 67,400,000 shares, accounting for 8.47% of the total issued share capital[176]. - The company has not reported any significant transactions, arrangements, or contracts involving directors or related entities as of June 30, 2024[185]. - There are no important contracts established with the controlling shareholder or its subsidiaries[186]. - The company has not purchased, sold, or redeemed any of its listed securities during the year ending June 30, 2024[191]. - At least 25% of the company's issued share capital is held by the public as of the report date[194]. - The consolidated financial statements for the year ending June 30, 2024, were audited by Zhonghui Anda CPA Limited[195]. Strategic Acquisitions and Future Outlook - A strategic acquisition of a local competitor is in progress, which is anticipated to add $50 million in annual revenue[54]. - The company has set a future outlook with a revenue target of $180 million for the next fiscal year, indicating a projected growth rate of 20%[54]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[54]. - New product development includes the launch of a cutting-edge construction management software, expected to enhance operational efficiency by 30%[54].
宏强控股(08262) - 2024 - 年度财报