Financial Performance - The Group's revenue increased by approximately HK$16.4 million or approximately 4.9%, from approximately HK$337 million for the year ended June 30, 2023, to approximately HK$353 million for the year ended June 30, 2024[5]. - The net profit for the year amounted to approximately HK$35.8 million, representing a decrease of approximately 18.3% compared to the net profit of approximately HK$43.8 million for the previous year[5]. - The increase in net profit was primarily attributed to rising costs of sales and administrative expenses[5]. - The gross profit decreased by approximately 20.0% to HK$63.6 million for the year, down from HK$79.5 million in the previous year, primarily due to increased costs of services[26]. - The gross profit margin fell from approximately 23.6% in the previous year to approximately 18.0% for the year, attributed to higher sub-contractor fees and construction material costs[26]. - Profit before taxation decreased approximately 21.2% to HK$43.0 million for the year, down from HK$54.6 million in the previous year[27]. - Total comprehensive income for the year decreased by approximately 18.3% to HK$35.8 million, down from HK$43.8 million in the previous year[29]. - Other income increased by approximately 50.0% to HK$2.4 million, primarily due to higher interest income[26]. Operational Challenges - The Group is facing increasing operational costs, particularly in direct labor and subcontracting charges, alongside intensified price competition[6]. - The economic outlook for the Hong Kong construction industry has become uncertain, with fewer projects being launched and increased price sensitivity among customers[20]. - The Group's financial performance may be adversely impacted by the inability to secure new contracts or a significant decrease in available tender invitations[125]. - The actual time and costs incurred during project implementation may exceed initial estimates, particularly due to customer-requested variations and unforeseen site conditions[128]. Dividend and Shareholder Returns - The Board of Directors has recommended a final cash dividend of HK$0.172 per ordinary share for the year, compared to nil for the previous year[12]. - The final dividend is subject to approval at the Annual General Meeting scheduled for November 11, 2024, and is expected to be paid on or before December 5, 2024[12]. - The Company has adopted a dividend policy aimed at achieving a balance between dividend amounts, profits, and retained capital for business purposes[123]. Financial Position - The Group has no outstanding debt as of June 30, 2024, indicating a steady financial position[7]. - The current ratio improved to 12.5 times as of June 30, 2024, compared to 10.7 times as of June 30, 2023[30]. - Total bank balances and cash as at 30 June 2024 were approximately HK$158.0 million, up from approximately HK$128.5 million as at 30 June 2023[36]. - The Group's reserves available for distribution amounted to approximately HK$288.6 million, an increase from approximately HK$252.8 million in 2023[132]. Management and Governance - The Board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a balanced skill set suitable for the company's business needs[56]. - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, to oversee specific aspects of the company's affairs[62]. - The Company has adopted a Board Diversity Policy on April 12, 2023, to enhance the effectiveness of the Board through diversity considerations[68]. - The Nomination Committee will review the Board Diversity Policy annually to ensure its continued effectiveness[69]. Risk Management and Compliance - The Board is responsible for maintaining effective risk management and internal control systems to safeguard the Group's assets and investments[92]. - The Group has engaged BT Corporate Governance Limited as an independent consultant to review the effectiveness of its risk management and internal control system until June 30, 2024[94]. - The Group's connected transactions comply with the Listing Rules under Chapter 14A[173]. Employee and Management Changes - The company has seen significant management changes, with key promotions indicating a focus on strengthening financial and project management capabilities[117][118]. - The management team collectively brings a wealth of experience from various reputable firms, enhancing the company's strategic direction[118][119]. - The Group recognizes employees as valuable assets and provides a comprehensive remuneration package, including salary and discretionary bonuses, to attract and retain talent[156]. Market and Customer Relations - Revenue from public sector projects increased significantly due to sizeable projects, including a passenger terminal at an airport and a sports park at Kai Tak[22]. - Revenue from private sector projects dropped from approximately HK$193.7 million to approximately HK$54.5 million, representing a decrease of 71.9%[22]. - The Group aims to reduce reliance on major customers by undertaking more sizable projects for other customers, maintaining a sustainable business model despite customer concentration risks[157]. Future Outlook - The Group maintains a cautiously optimistic outlook for its business in the medium to long term, focusing on specialized passive fire protection services and exploring prefabrication opportunities[6]. - The Group's extensive experience and strong relationships with suppliers and customers position it well for future opportunities[20].
怡俊集团控股(02442) - 2024 - 年度财报