Financial Performance - The company's net loss attributable to shareholders of approximately HKD 31.2 million for the reporting year, compared to a net profit of approximately HKD 8.4 million for the same period in 2024[19]. - Revenue for the reporting year was approximately HKD 158.5 million, an increase of about 13.3% from approximately HKD 140.0 million for the year ended March 31, 2024, primarily due to increased construction project revenue[27]. - The cost of sales for the reporting year was approximately HKD 145.0 million, a significant increase of about 38.0% from approximately HKD 105.0 million for the year ended March 31, 2024, mainly due to increased subcontracting costs[28]. - Gross profit for the reporting year was approximately HKD 13.6 million, a decrease of about 61.2% from approximately HKD 34.9 million for the year ended March 31, 2024[29]. - The company's gross profit margin decreased from approximately 25.0% to about 8.6% due to lower profit margins on newly awarded construction projects[31]. - Administrative expenses for the reporting year were approximately HKD 21.4 million, a decrease of about 26.5% from approximately HKD 29.1 million for the year ended March 31, 2024, primarily due to reduced consulting and legal fees[32]. Business Outlook and Strategy - The group's performance deteriorated due to a decrease in construction projects, despite an increase in revenue from construction activities during the reporting period[13]. - The overall market sentiment remains weak due to geopolitical tensions, rising interest rates, and inflationary pressures[13]. - The company is cautiously optimistic about its business outlook, focusing on improving project management capabilities[13]. - The company aims to implement stringent cost control measures to improve operational efficiency and profitability[13]. - The company will continue to seek potential business opportunities to expand revenue sources and enhance shareholder returns[14]. - The company plans to bid for contracts with higher profit margins to improve business performance[13]. - The company acknowledges the ongoing challenges in the business environment for 2024[13]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and compliance with regulatory requirements[71]. - The board emphasizes the importance of good corporate governance to maintain shareholder trust and create long-term value[77]. - The company has adopted the GEM Listing Rules and has complied with all applicable corporate governance code provisions during the reporting year, except for a deviation regarding the separation of roles between the chairman and CEO[78]. - The board consists of one executive director and three independent non-executive directors, meeting the GEM Listing Rules requirements for independence[88]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, each with clear written terms of reference[95]. - The company has implemented a culture of integrity and accountability, ensuring high standards of business ethics and governance across all operations[85]. - The board is responsible for overseeing the company's overall strategy, financial performance, and risk management systems[81]. Rights Issues and Financial Management - The company completed a rights issue on May 3, 2022, issuing 81,000,000 shares at a subscription price of HKD 0.55 per share, raising approximately HKD 42.3 million net after expenses[41]. - The net proceeds from the 2022 rights issue were allocated as follows: HKD 3.1 million for repaying notes, HKD 20 million for acquiring a new office, HKD 7 million for hiring additional full-time staff, HKD 3 million for business development and marketing, and HKD 9.2 million for general working capital[41]. - The company announced a new rights issue on February 17, 2023, proposing to issue 240,002,067 shares at a subscription price of HKD 0.147 per share, aiming to raise approximately HKD 33.5 million[44]. - The net proceeds from the 2023 rights issue are planned to be used as follows: HKD 18.5 million for expanding foundation business capabilities, HKD 7.5 million for developing AI business, and HKD 7.5 million for general working capital[46]. - The company announced a rights issue on September 4, 2024, to raise approximately HKD 22.5 million by issuing 240,001,722 shares at a subscription price of HKD 0.1 per share[47]. Human Resources and Talent Development - The company recognizes the importance of cultivating talent, as employees' unique expertise and capabilities are crucial for the group's development[14]. - The company aims to enhance operational capabilities and efficiency in foundation and site leveling works through investments in human resources and information systems[20]. - The company is committed to employee development and workplace safety, fostering a culture of responsibility and engagement among staff[86]. - The company had 22 full-time employees as of March 31, 2025, a significant decrease from 83 employees in 2024[60]. - Total employee costs for the reporting year amounted to approximately HKD 21.9 million, compared to HKD 48.6 million in 2024[60]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of environmental, social, and governance (ESG) management, integrating these principles into its business operations for sustainable development[141]. - The company is exploring alternatives to carbon-intensive concrete to reduce its carbon footprint in the construction industry[142]. - The company is committed to supporting government environmental initiatives and engaging in community service as part of its corporate social responsibility[142]. - The company has established key performance indicators to monitor and improve its environmental and social performance, particularly in resource consumption[154]. - The company aims to integrate sustainable development into its business strategy while minimizing its ecological footprint[155]. - The company has implemented measures to reduce emissions, including upgrading construction equipment to energy-efficient models and improving vehicle management[171]. - The company is committed to achieving zero work-related fatalities and regularly conducts safety drills and meetings to enhance workplace safety awareness[167]. Risk Management - The company maintains effective internal control and risk management systems to protect shareholder investments and group assets[128]. - The risk management process includes annual risk identification and assessment, with results documented for board review[129]. - The board is responsible for overseeing the effectiveness of the internal control and risk management systems, with annual reviews conducted[128]. - The company has established a whistleblowing policy to guide reporting of fraud and misconduct, ensuring confidentiality of reports[132]. Board Composition and Diversity - The company is actively expanding its board with experienced professionals to enhance governance and oversight[66][70]. - The company has a board diversity policy that considers gender, age, experience, cultural and educational background, professional experience, skills, and knowledge[110]. - The nomination policy ensures a balanced board in terms of skills, experience, knowledge, and diverse perspectives[115]. - The independent non-executive directors have demonstrated strong commitment and sufficient time to fulfill their responsibilities[107].
中国新消费集团(08275) - 2025 - 年度业绩