应力控股(02663) - 2025 - 年度业绩

Financial Summary The company's revenue slightly increased by 0.3% to HKD 667.7 million, while gross profit and profit for the year decreased by 7.1% and 22.0% respectively, leading to lower margins and reduced dividends per share, alongside a decline in total assets and total equity Financial Summary (For the Year Ended 31 March) | Metric | 2025 (HKD Million) | 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 667.7 | 666.0 | 0.3% | | Gross Profit | 107.1 | 115.2 | (7.1%) | | Gross Margin | 16.0% | 17.3% | (1.3%) | | Profit for the Year | 36.2 | 46.4 | (22.0%) | | Net Profit Margin | 5.4% | 7.0% | (1.6%) | | Dividends | | | | | Final (per share) | 3.0 HK Cents | 4.0 HK Cents | (25.0%) | | Special (per share) | Zero | 4.0 HK Cents | (100.0%) | | As at 31 March | | | | | Total Assets | 437.8 | 526.6 | (16.9%) | | Total Equity | 261.0 | 292.4 | (10.8%) | | Gearing Ratio | 5.0% | 6.4% | (1.4%) | Consolidated Financial Statements Consolidated Statement of Comprehensive Income For the year ended March 31, 2025, the company's revenue slightly increased to HKD 667.7 million, but gross profit decreased by 7.1% to HKD 107.1 million, with profit for the year falling 22.0% to HKD 36.157 million, and basic and diluted earnings per share reducing to 6.49 HK cents from 8.33 HK cents last year Consolidated Statement of Comprehensive Income (For the Year Ended 31 March) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 667,711 | 666,037 | | Cost of Revenue | (560,616) | (550,806) | | Gross Profit | 107,095 | 115,231 | | Other Income | 10,550 | 7,187 | | Fair Value Loss on Investment Properties | (343) | (294) | | Provision for Impairment Loss on Trade Receivables | (15,603) | (8,794) | | Finance Costs | (2,501) | (3,477) | | Profit Before Income Tax | 41,264 | 55,750 | | Income Tax Expense | (5,107) | (9,372) | | Profit for the Year | 36,157 | 46,378 | | Basic and Diluted Earnings Per Share (HK Cents) | 6.49 | 8.33 | Consolidated Statement of Financial Position As of March 31, 2025, total assets were HKD 437.8 million, a 16.9% decrease year-on-year, with non-current assets slightly increasing while current assets and liabilities both decreased, leading to a decline in net current assets and total equity falling 10.6% to HKD 261.4 million Consolidated Statement of Financial Position (As at 31 March) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 16,816 | 14,871 | | Investment Properties | 3,525 | 3,913 | | Deferred Tax Assets | 3,384 | 405 | | Total Non-current Assets | 24,481 | 19,946 | | Current Assets | | | | Inventories | 19,409 | 14,926 | | Contract Assets | 70,970 | 45,398 | | Trade and Other Receivables | 200,811 | 275,793 | | Cash and Bank Balances | 119,966 | 170,231 | | Total Current Assets | 413,336 | 506,687 | | Current Liabilities | | | | Contract Liabilities | 42,437 | 76,384 | | Trade and Other Payables | 119,503 | 135,871 | | Bank Borrowings | – | 9,276 | | Total Current Liabilities | 169,937 | 230,087 | | Net Current Assets | 243,399 | 276,600 | | Non-current Liabilities | | | | Lease Liabilities | 6,466 | 4,176 | | Total Non-current Liabilities | 6,482 | 4,192 | | Total Equity | 261,398 | 292,354 | Notes to the Consolidated Financial Statements General Information The company was incorporated in the Cayman Islands on May 15, 2015, with shares listed on the Main Board of the Hong Kong Stock Exchange, primarily engaging in structural engineering, supply and installation of building materials, and trading of building materials - The company was incorporated in the Cayman Islands on May 15, 2015, and its shares are listed on the Main Board of The Stock Exchange of Hong Kong[6] - The Group is principally engaged in (i) the provision of structural engineering works; (ii) the supply and installation of building materials; and (iii) the trading of building materials[6] Basis of Preparation The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the HKICPA and the disclosure requirements of the Hong Kong Companies Ordinance, including disclosures required by the Listing Rules, presented in HKD on a historical cost basis, except for investment properties measured at fair value - The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance, and include applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[7] - The consolidated financial statements are prepared on the historical cost basis, except for investment properties which are measured at fair value, and are presented in Hong Kong Dollars[7][9] Adoption of New or Revised HKFRSs New and Revised HKFRSs Effective from 1 April 2024 During the reporting period, the company adopted several new and revised HKFRSs effective from April 1, 2024, none of which had any significant impact on the Group's accounting policies, financial performance, or financial position - The adoption included amendments to HKAS 1, HK(IFRIC)-Int 5, HKFRS 16, and HKAS 7 and HKFRS 7[10] - The adoption of these new and revised HKFRSs had no significant impact on the Group’s accounting policies, financial performance, or financial position for the current and prior periods[10] Revised HKFRSs Issued But Not Yet Effective Several revised HKFRSs have been issued but are not yet effective, with future effective dates, covering amendments related to lack of exchangeability, classification and measurement of financial instruments, annual improvements, and presentation and disclosure in financial statements - Issued but not yet effective standards include HKAS 21 (Lack of Exchangeability), HKFRS 9 and 7 (Classification and Measurement of Financial Instruments), and HKFRS 18 (Presentation and Disclosure in Financial Statements)[11] - The effective dates for these amendments range from annual periods beginning on or after January 1, 2025, to dates yet to be determined[11] Segment Information Operating Segment Information The Group reclassified its operating segments from three to two: structural engineering works, and supply, installation, and trading of building materials, to better assess operational performance and resource allocation, with structural engineering works contributing the largest revenue but experiencing a significant year-on-year decline in segment profit - The Group reclassified its operating segments from the previous three (structural engineering works; supply and installation of building materials; and trading of building materials) to two: (1) structural engineering works; and (2) supply, installation, and trading of building materials[12] Operating Segment Revenue and Profit (For the Year Ended 31 March) | Segment | 2025 Revenue (HKD Thousand) | 2024 Revenue (HKD Thousand) | 2025 Profit (HKD Thousand) | 2024 Profit (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Structural Engineering Works | 596,969 | 616,541 | 60,840 | 87,718 | | Supply, Installation and Trading of Building Materials | 70,742 | 49,496 | 21,672 | 15,091 | | Total (External Customers) | 667,711 | 666,037 | 82,512 | 102,809 | Operating Segment Assets (As at 31 March) | Segment | 2025 Assets (HKD Thousand) | 2024 Assets (HKD Thousand) | | :--- | :--- | :--- | | Structural Engineering Works | 287,837 | 339,605 | | Supply, Installation and Trading of Building Materials | 20,530 | 9,814 | | Total Segment Assets | 308,367 | 349,419 | Geographical Segment Information The Group's revenue is primarily derived from activities in Hong Kong, with specific non-current assets (excluding deferred tax assets and deposits) distributed across Hong Kong and China, showing an increase in Hong Kong and a decrease in China - The Group's revenue is entirely derived from activities in Hong Kong (its place of domicile)[18] Specific Non-current Assets by Geographical Location (As at 31 March) | Geographical Location | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Hong Kong | 11,118 | 5,522 | | China | 9,824 | 13,863 | | Total | 20,942 | 19,385 | Information About Major Customers Customer A remained a major customer in 2025, contributing HKD 251.3 million in revenue, a significant decrease from the previous year, while Customer B, a major customer in 2024, contributed less than 10% of revenue in 2025 Major Customer Revenue (For the Year Ended 31 March) | Customer | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Customer A | 251,267 | 376,726 | | Customer B | Not Applicable (<10%) | 103,332 | - For the years ended March 31, 2025 and 2024, revenue from Customer A and Customer B was generated from structural engineering works[19] Revenue The Group's revenue primarily stems from structural engineering works, supply and installation of building materials, and trading of building materials, with structural engineering remaining the largest source but declining year-on-year, while trading of building materials saw significant growth, and expected revenue recognition within one year substantially decreased Revenue Breakdown (For the Year Ended 31 March) | Revenue Source | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Structural Engineering Works | 596,969 | 616,541 | | Supply and Installation of Building Materials | 33,476 | 26,938 | | Trading of Building Materials | 37,266 | 22,558 | | Total | 667,711 | 666,037 | Expected Future Revenue Recognition (As at 31 March) | Recognition Period | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Within one year | 230,477 | 820,461 | | After one year | 138,211 | 78,064 | | Total | 368,688 | 898,525 | Other Income The Group's other income increased by 46.8% year-on-year to HKD 10.550 million, primarily driven by higher bank interest income, exchange gains, and a significant increase in gains from disposal of property, plant and equipment Other Income Breakdown (For the Year Ended 31 March) | Income Source | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Bank interest income | 4,597 | 4,010 | | Exchange gains | 3,896 | 1,894 | | Gain on disposal of property, plant and equipment | 512 | 43 | | Reversal of trade and retention payables | 1,086 | 182 | | Total | 10,550 | 7,187 | Profit Before Income Tax Profit before income tax is derived after deducting or including various expenses, with changes in cost of inventories, depreciation, and employee costs, where employee costs slightly increased while depreciation decreased Expenses Related to Profit Before Income Tax (For the Year Ended 31 March) | Expense Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Auditors' remuneration | 660 | 750 | | Cost of inventories recognised | 160,125 | 189,280 | | Depreciation | 8,737 | 9,290 | | Employee costs | 83,232 | 80,050 | | Net exchange gains | (3,896) | (1,894) | | Short-term lease expenses | 1,694 | 558 | Income Tax Expense Income tax expense for the year significantly decreased to HKD 5.107 million from HKD 9.372 million last year, with the effective tax rate falling from 16.8% to 12.4%, primarily due to deductible specific provisions for outstanding receivables from a customer group undergoing liquidation Income Tax Expense (For the Year Ended 31 March) | Tax Type | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 6,086 | 8,644 | | PRC Enterprise Income Tax | 1,970 | 1,488 | | Under/(over) provision in prior years | 31 | (454) | | Deferred tax | (2,980) | (306) | | Total | 5,107 | 9,372 | - The effective tax rate for the year was approximately 12.4%, a decrease from 16.8% in the prior year, primarily due to specific provisions for outstanding receivables from a customer group undergoing liquidation being deductible in the current year[24][54] - PRC subsidiaries qualify as small-profit enterprises, benefiting from progressive tax rates and an additional 40% tax reduction[25] Dividends Dividends Attributable to Owners of the Company for the Year The Board recommended a final dividend of 3.0 HK cents per share but no special dividend, totaling HKD 16.7 million, contrasting with last year's 4.0 HK cents for both final and special dividends Dividends Attributable to Owners of the Company for the Year (For the Year Ended 31 March) | Dividend Type | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Proposed final dividend (per share) | 16,708 (3.0 HK Cents) | 22,277 (4.0 HK Cents) | | Proposed special dividend (per share) | – (Zero HK Cents) | 22,277 (4.0 HK Cents) | | Special interim dividend declared and paid (per share) | 22,277 (4.0 HK Cents) | – (Zero) | | Total | 38,985 | 44,554 | Dividends Approved and Paid for Prior Financial Years Attributable to Owners of the Company for the Year Total final and special dividends approved and paid for prior financial years amounted to HKD 44.554 million, an increase from last year, with an additional special interim dividend of 4.0 HK cents per share also approved and paid this year Dividends Approved and Paid for Prior Financial Years (For the Year Ended 31 March) | Dividend Type | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Final and special dividends approved and paid for prior financial years (per share) | 44,554 (8.0 HK Cents) | 16,708 (3.0 HK Cents) | | Special interim dividend approved and paid for the current financial year (per share) | 22,277 (4.0 HK Cents) | – (Zero) | Earnings Per Share Basic and diluted earnings per share for the year were 6.49 HK cents, a 22.0% decrease from 8.33 HK cents last year, with diluted earnings per share being the same as basic earnings per share due to the absence of potentially dilutive ordinary shares Earnings Per Share (For the Year Ended 31 March) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the year attributable to owners of the Company (HKD Thousand) | 36,157 | 46,378 | | Weighted average number of ordinary shares in issue (Thousand shares) | 556,930 | 556,930 | | Basic and diluted earnings per share (HK Cents) | 6.49 | 8.33 | - As there were no potentially dilutive ordinary shares in existence for the current and prior years, diluted earnings per share were the same as basic earnings per share[28] Trade and Other Receivables, Deposits and Prepayments Trade Receivables Net trade receivables decreased by 6.4% year-on-year to HKD 126.2 million, with credit terms typically ranging from 30 to 60 days, while receivables over 90 days increased, and impairment loss provisions significantly rose Net Trade Receivables and Ageing Analysis (As at 31 March) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Net trade receivables | 126,249 | 134,947 | | Ageing analysis | | | | 0 to 30 days | 104,358 | 114,490 | | 31 to 60 days | 8,175 | 12,747 | | 61 to 90 days | 996 | 122 | | Over 90 days | 12,720 | 7,588 | Movement in Provision for Impairment Loss on Trade Receivables (For the Year Ended 31 March) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Beginning of period | 10,435 | 1,641 | | Impairment loss provision | 15,603 | 8,794 | | End of period | 26,038 | 10,435 | Retention Receivables Net retention receivables significantly decreased by 57.1% year-on-year to HKD 42.115 million, with retention periods typically ranging from 1 to 2 years, representing 5% to 10% of contract sums, and impairment loss provisions increased Net Retention Receivables (As at 31 March) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Net retention receivables | 42,115 | 98,114 | - The Group generally provides retention periods of 1 to 2 years, with retention money typically representing 5% to 10% of the contract sum[31] Movement in Provision for Impairment Loss on Retention Receivables (For the Year Ended 31 March) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Beginning of period | 5,215 | 2,863 | | Impairment loss provision | 1,939 | 2,352 | | End of period | 7,154 | 5,215 | Trade and Other Payables Trade Payables Trade payables decreased by 26.5% year-on-year to HKD 70.506 million, with credit terms from suppliers and subcontractors generally ranging from 30 to 60 days Trade Payables and Ageing Analysis (As at 31 March) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Trade payables | 70,506 | 95,993 | | Ageing analysis | | | | 0 to 30 days | 35,326 | 60,206 | | 31 to 60 days | 25,760 | 22,904 | | 61 to 90 days | 4,375 | 4,665 | | Over 90 days | 5,045 | 8,218 | Retention Payables Retention payables increased by 46.6% year-on-year to HKD 33.767 million, with a significant increase in amounts due after one year Retention Payables Maturity Analysis (As at 31 March) | Maturity | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | On demand or within one year | 9,363 | 10,790 | | After one year | 24,404 | 12,250 | | Total | 33,767 | 23,040 | Leases The Group's total lease liabilities increased to HKD 12.980 million, primarily for office properties, plants, warehouses, dormitories, and motor vehicles, with new lease additions of HKD 9.904 million during the year - The Group leases office properties, plants, warehouses, dormitories, and motor vehicles for operational purposes, with initial lease terms ranging from two to four years[36] Movement in Lease Liabilities (For the Year Ended 31 March) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Balance at beginning of period | 9,482 | 8,899 | | Additions | 9,904 | 8,217 | | Finance costs | 580 | 447 | | Lease payments | (6,909) | (7,932) | | Balance at end of period | 12,980 | 9,482 | Future Lease Payments Maturity (As at 31 March) | Maturity | 2025 Minimum Lease Payments (HKD Thousand) | 2024 Minimum Lease Payments (HKD Thousand) | | :--- | :--- | :--- | | Not later than one year | 6,945 | 5,601 | | Later than one year but not later than two years | 4,262 | 3,590 | | Later than two years but not later than five years | 2,434 | 727 | | Total | 13,641 | 9,918 | Share Capital As of March 31, 2025, the company's authorized share capital was HKD 20 million, with issued and fully paid share capital of HKD 5.569 million, comprising 556,930,000 shares, remaining unchanged from the previous year Share Capital Structure (As at 31 March) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Authorised share capital (HKD Thousand) | 20,000 | 20,000 | | Issued and fully paid share capital (HKD Thousand) | 5,569 | 5,569 | | Number of shares in issue | 556,930,000 | 556,930,000 | Management Discussion and Analysis Business Activities The Group's primary business activities include providing structural engineering works in Hong Kong, focusing on design and build projects, and the supply, installation, and trading of building materials, with no significant changes in business operations during the year - The Group is principally engaged in (i) the provision of structural engineering works in Hong Kong, focusing on design and build projects; and (ii) the supply of building materials and provision of installation services, and trading of building materials in Hong Kong[42] - There were no significant changes in the Group’s business operations[42] Business Review The Group's revenue for the year was approximately HKD 667.7 million, a slight increase of 0.3% from the previous year, primarily due to effective management of progress on several major projects, including the Central commercial building facade and Kowloon City sports facility roof renovation - The Group recorded revenue of approximately HKD 667.7 million for the year, an increase of approximately HKD 1.7 million or 0.3% from the previous year, with revenue performance similar to the prior year[43] Major Projects Undertaken During the Year (As at 31 March 2025) | Project Description | Revenue recognised for the year (HKD Million) | Status | Expected Completion Date | | :--- | :--- | :--- | :--- | | Building facade for a proposed office redevelopment project in Central | 151.0 | Ongoing | Q3 2025 | | Roof renovation works for certain sports facilities in Kowloon City, etc | 97.6 | Ongoing | Q2 2025 | | Steel structure works for certain infrastructure in Kowloon City | 65.6 | Ongoing | Q3 2025 | | Design, supply, installation, testing and commissioning of curtain wall for a commercial building in Wan Chai | 41.8 | Ongoing | Q2 2025 | | Canopy and steel structure works for certain infrastructure at the airport | 38.8 | Ongoing | Q4 2025 | Future Outlook Facing intense competition in the construction industry, the Group will adjust its bidding strategy to prioritize smaller projects, optimize resource allocation, and enhance operational efficiency, with approximately HKD 369 million in outstanding contracts as of March 31, 2025, and a provision of HKD 16.5 million for trade and retention receivables and contract assets due to a major customer group undergoing liquidation - The Group will adjust its bidding strategy to prioritize smaller projects and focus on optimizing resource allocation and enhancing operational efficiency[45] - As of March 31, 2025, the Group had outstanding contracts of approximately HKD 369 million[45] - The Group made a provision of approximately HKD 16.5 million for trade and retention receivables and contract assets, primarily from a major customer group undergoing liquidation[45] Financial Summary Revenue for the year slightly increased by 0.3%, but gross profit and net profit decreased by 7.1% and 22.0% respectively, with both current and total assets declining, while the current ratio and gearing ratio improved Financial Summary and Key Performance Indicators (For the Year Ended 31 March) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 667,711 | 666,037 | 0.3% | | Gross Profit | 107,095 | 115,231 | (7.1%) | | Profit Before Income Tax | 41,264 | 55,750 | (26.0%) | | Net Profit | 36,157 | 46,378 | (22.0%) | | Earnings Per Share (HK Cents) | 6.49 | 8.33 | (22.0%) | | Key Performance Indicators | | | | | Gross Margin | 16.0% | 17.3% | (1.3%) | | Net Profit Margin | 5.4% | 7.0% | (1.6%) | | Return on Equity | 13.8% | 15.9% | (2.1%) | | Return on Total Assets | 8.3% | 8.8% | (0.5%) | | Current Ratio (times) | 2.4 | 2.2 | 0.2 | | Gearing Ratio (%) | 5.0 | 6.4 | (1.4%) | Financial Review Revenue Revenue for the year was approximately HKD 667.7 million, a slight increase of 0.3% from the previous year, primarily due to effective management of progress on several major projects - Revenue for the year was approximately HKD 667.7 million, an increase of approximately HKD 1.7 million or 0.3% from the previous year[49] - Revenue performance was similar to the prior year due to the ability to manage the progress of several major projects as in the previous year[49] Cost of Revenue and Gross Profit Cost of revenue increased by 1.8% year-on-year to HKD 560.6 million, a higher growth rate than revenue, while gross profit decreased by 7.1% to HKD 107.1 million, and gross margin fell from 17.3% to 16.0%, primarily due to compressed profit margins from intense competition in the construction market - Cost of revenue was approximately HKD 560.6 million, an increase of approximately 1.8% from the previous year, with a higher growth rate than revenue[50] - Gross profit was approximately HKD 107.1 million, a decrease of approximately 7.1% from the previous year, with gross margin falling to 16.0% (from 17.3% in the prior year)[50] - The decrease in gross margin was due to compressed profit margins resulting from intense competition in the construction market[50] Other Income Other income increased by 46.8% year-on-year to HKD 10.6 million, primarily driven by higher bank interest income and exchange gains - Other income was approximately HKD 10.6 million, mainly comprising bank interest income of approximately HKD 4.6 million and exchange gains of approximately HKD 3.9 million[51] - Both bank interest income and exchange gains increased from the previous year[51] Administrative and Other Operating Expenses Administrative and other operating expenses increased by 8.4% year-on-year to HKD 54.3 million, primarily due to an increase of approximately HKD 4.0 million in directors' discretionary bonuses, while a provision of approximately HKD 16.5 million for receivables and retention was not included as it was deemed an unforeseen exceptional circumstance - Administrative and other operating expenses were approximately HKD 54.3 million, an increase of approximately HKD 4.2 million from the previous year[52] - The increase was mainly due to an increase of approximately HKD 4.0 million in directors' discretionary bonuses[52] - A provision of approximately HKD 16.5 million for trade and retention receivables and contract assets was not included, as it primarily arose from a customer group undergoing liquidation and was considered an unforeseen exceptional circumstance[52] Finance Costs Finance costs decreased by 28.6% year-on-year to HKD 2.5 million, primarily due to a reduction in bank borrowings drawn down during the year - Finance costs were approximately HKD 2.5 million, a decrease of approximately HKD 1.0 million or 28.6% from the previous year[53] - The decrease was mainly attributable to a reduction in bank borrowings drawn down during the year[53] Income Tax Expense Income tax expense significantly decreased by 45.5% year-on-year to HKD 5.1 million, with the effective tax rate falling from 16.8% to 12.4%, primarily benefiting from deductible specific provisions for outstanding receivables from a customer undergoing liquidation - Income tax expense was approximately HKD 5.1 million, with an effective tax rate of approximately 12.4%, a decrease from HKD 9.4 million and 16.8% in the previous year[54] - The lower effective tax rate was due to specific provisions for outstanding receivables from a customer group undergoing liquidation being deductible in the current year[54] Profit for the Year Profit for the year decreased by 22.0% year-on-year to HKD 36.2 million, primarily due to increased provisions for impairment loss on receivables and higher directors' discretionary bonuses - Profit for the year decreased from approximately HKD 46.4 million in the previous year to approximately HKD 36.2 million in the current year, a reduction of approximately HKD 10.2 million or 22.0%[55] - The decrease in profit was mainly attributable to increased provisions for impairment loss on receivables and higher directors' discretionary bonuses[55] Dividends The Board recommended a final dividend of 3.0 HK cents per share, with no special dividend proposed, totaling HKD 16.7 million, a significant decrease from last year's total final and special dividends of HKD 44.6 million - The Board recommended a final dividend of 3.0 HK cents per share (FY2024: 4.0 HK cents and special dividend of 4.0 HK cents)[56] - The total proposed final dividend is HKD 16.7 million, compared to total final and special dividends of HKD 22.3 million in FY2024[56] Liquidity, Financial Resources and Capital Structure The Group funds working capital through operating cash flow and short-term borrowings, with net cash inflow from operating activities of approximately HKD 33.1 million for the year, while net current assets and cash and bank balances decreased, but the current ratio improved from 2.2 times to 2.4 times, indicating enhanced liquidity - Net cash inflow from operating activities for the year was approximately HKD 33.1 million[57] Liquidity Indicators (As at 31 March) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Current Assets | 413,336 | 506,687 | | Current Liabilities | 169,937 | 230,087 | | Net Current Assets | 243,399 | 276,600 | | Current Ratio (times) | 2.4 | 2.2 | | Cash and Bank Balances | 119,966 | 170,231 | - As of March 31, 2025, the Group had total available banking facilities of approximately HKD 207.0 million, all of which were unutilised[58] Gearing Ratio The gearing ratio decreased from 6.4% to 5.0%, primarily due to improved liquidity and the repayment of all bank borrowings near the year-end - The gearing ratio decreased from approximately 6.4% as at March 31, 2024, to 5.0% as at March 31, 2025[59] - The decrease in gearing ratio was attributable to the Group’s improved liquidity and the repayment of all bank borrowings near the year-end[59] Foreign Currency Risk and Treasury Policy The Group's operations are primarily conducted in HKD, USD, GBP, EUR, and RMB, with a prudent financial management approach to closely monitor foreign exchange positions, but no hedging activities were undertaken during the year - The Group’s operations are mainly conducted in Hong Kong Dollars, US Dollars, Pounds Sterling, Euros, and Renminbi[60] - The Group adopts a prudent financial management approach to closely monitor its foreign exchange positions, but no hedging activities were undertaken during the year[60] Pledge of Assets As of March 31, 2025, the Group had no bank borrowings, with banking facilities being unsecured and guaranteed by the company, and no pledged deposits - As of March 31, 2025, the Group had no bank borrowings (2024: HKD 9.3 million)[61] - The banking facilities are unsecured and guaranteed by the Company[61] - As of March 31, 2025, the Group had no pledged deposits[61] Material Investments Apart from investments in its subsidiaries, the Group held no other material investments during the year - Save for investments in its subsidiaries, the Group did not hold any other material investments during the year[62] Material Acquisitions and Disposals The Group did not undertake any material acquisitions or disposals of subsidiaries or fixed assets during the year - The Group did not acquire or dispose of any subsidiaries or fixed assets during the year[63] Contingent Liabilities As of March 31, 2025, the Group had no material contingent liabilities - As of March 31, 2025, the Group had no material contingent liabilities[64] Employees and Remuneration Policy As of March 31, 2025, the Group employed 219 staff with total employee benefit expenses of approximately HKD 83.2 million, determining salaries based on qualifications, experience, position, and seniority, with annual performance reviews, maintaining good employee relations without significant labor disputes or recruitment difficulties - As of March 31, 2025, the Group employed 219 staff (2024: 217 staff)[65] - Total employee benefit expenses for the year were approximately HKD 83.2 million (FY2024: HKD 80.1 million)[65] - The Group determines employee salaries based on individual qualifications, relevant experience, position, and seniority, with annual performance reviews based on performance[65] Purchase, Sale or Redemption of the Company's Listed Shares Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed shares during the year - During the year, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company’s listed shares[66] Standard Code for Securities Transactions by Directors The company adopted the Standard Code as set out in Appendix 10 of the Listing Rules for directors' securities transactions and confirmed that all directors complied with the code during the year - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules[67] - Each Director has confirmed compliance with the Model Code during the year[67] Share Option Scheme The total number of share options available for grant under the company's share option scheme is 60,000,000, representing 10.77% of the company's issued shares as of the announcement date, with no changes during the year Share Option Scheme (As at 31 March) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total number of share options available for grant | 60,000,000 | 60,000,000 | | Movement during the year | – | – | - The total number of shares available for issue represents 10.77% of the Company’s issued shares as at the date of this announcement[69] Corporate Governance and Other Information Corporate Governance and Compliance with the Corporate Governance Code The Group is committed to maintaining high standards of corporate governance, believing it fosters sound growth, enhances confidence, and protects shareholders' interests, and has adopted and complied with the Corporate Governance Code in Appendix 14 of the Listing Rules - The Group is committed to maintaining high standards of corporate governance, believing it contributes to sound growth, enhances confidence among customers and suppliers, and protects shareholders' interests[71] - The Company has adopted and complied with the Corporate Governance Code as set out in Appendix 14 to the Listing Rules throughout the year[71] Events After the Reporting Period As of the announcement date, no events with significant impact on the Group have occurred after the end of the reporting period - No events with significant impact on the Group have occurred after March 31, 2025, and up to the date of this announcement[72] Sufficiency of Public Float As of the announcement date, based on publicly available information and to the best knowledge of the directors, at least 25% of the company's issued share capital is held by the public - As of the date of this announcement, at least 25% of the Company’s issued share capital is held by the public[73] Management Contracts No management contracts concerning the whole or any substantial part of the company's business were entered into or existed during the year - During the year, no management contracts concerning the whole or any substantial part of the business of the Company were entered into or existed[74] Final Dividend The Board recommended a final dividend of 3.0 HK cents per share, totaling HKD 16.7 million, payable on or about September 26, 2025, to shareholders on record as of September 9, 2025, subject to approval at the Annual General Meeting - The Board recommended a final dividend of 3.0 HK cents per share (FY2024: 4.0 HK cents and special dividend of 4.0 HK cents)[75] - The total final dividend of HKD 16.7 million is expected to be paid on or about September 26, 2025[75] - Dividend distribution is subject to the Group’s accumulated reserves, liquidity position, expected cash flows, and working capital requirements[75] Closure of Register of Members The register of members will be closed from August 26 to August 29, 2025, to determine eligibility for attending and voting at the Annual General Meeting, and again from September 5 to September 9, 2025, to determine eligibility for the proposed final dividend - The register of members will be closed from August 26 to August 29, 2025, to determine eligibility for attending and voting at the Annual General Meeting[76] - The register of members will also be closed from September 5 to September 9, 2025, to determine eligibility for the proposed final dividend[76] Audit Committee and Review of Financial Statements and This Annual Results Announcement The Audit Committee reviewed the annual results announcement and consolidated financial statements for the year, comprising four independent non-executive directors chaired by Ms. Lai Bik Chee, with the Group's auditor confirming consistency of financial figures in the announcement with the audited consolidated financial statements, though not constituting an assurance engagement - The Audit Committee has reviewed the annual results announcement and the consolidated financial statements for the year ended March 31, 2025[77] - The Audit Committee comprises four independent non-executive Directors and is chaired by Ms. Lai Bik Chee[77] - The Group’s auditor has agreed the financial figures in this announcement with the amounts set out in the Group’s audited consolidated financial statements, but this does not constitute an assurance engagement[77] Publication of Annual Results and Annual Report This annual results announcement has been published on the Stock Exchange and the company's website, with the annual report containing all information required by the Listing Rules to be dispatched to shareholders and published on both platforms in due course - This annual results announcement has been published on the Stock Exchange and the Company’s website[78] - The annual report containing all information required by the Listing Rules will be dispatched to shareholders and published on the Stock Exchange and the Company’s website in due course[78]