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高升集团控股(01283) - 2025 - 年度业绩
ACCEL GROUPACCEL GROUP(HK:01283)2025-06-26 14:58

Financial Highlights Final Dividend The Board has recommended a final dividend of HKD 1.4 cents per share for the year, an increase from the previous year - Recommended final dividend of HKD 1.4 cents per share (2024: HKD 1.3 cents per share) for the current year3 Key Financial Data The Group recorded slight increases in revenue and gross profit, significant growth in net profit, and stable gross margin in FY2025 2025 Financial Highlights | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 556,417 | 553,537 | | Gross Profit | 88,525 | 87,834 | | Gross Margin | 15.9% | 15.9% | | Profit | 47,020 | 40,419 | Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group achieved slight revenue growth and significant net profit increase in FY2025, but other comprehensive income decreased due to fair value losses on financial assets Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 556,417 | 553,537 | | Cost of Services | (467,892) | (465,703) | | Gross Profit | 88,525 | 87,834 | | Profit Before Tax | 57,057 | 48,800 | | Profit for the Year | 47,020 | 40,419 | | Total Comprehensive Income for the Year | 42,880 | 40,419 | | Basic Earnings Per Share (HK cents) | 5.77 | 5.10 | | Diluted Earnings Per Share (HK cents) | 5.75 | 5.09 | - Other comprehensive expense for 2025 was (HKD 4,140 thousand) due to fair value changes of financial assets designated at fair value through other comprehensive income, compared to zero in 20245 Consolidated Statement of Financial Position As of March 31, 2025, the Group's total assets and equity increased, net current assets rose, but non-current assets slightly decreased Summary of Consolidated Statement of Financial Position | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 78,533 | 98,754 | | Current Assets | 509,812 | 427,420 | | Current Liabilities | 135,559 | 99,229 | | Net Current Assets | 374,253 | 328,191 | | Net Assets | 451,132 | 421,695 | | Total Equity | 451,132 | 421,695 | - Property, plant and equipment within non-current assets decreased from HKD 68,227 thousand to HKD 62,146 thousand; financial assets at fair value through other comprehensive income increased from zero to HKD 5,957 thousand7 - Trade and other receivables, deposits and prepayments within current assets increased from HKD 84,417 thousand to HKD 121,835 thousand; contract assets increased from HKD 242,049 thousand to HKD 262,311 thousand; cash and cash equivalents increased from HKD 98,428 thousand to HKD 107,397 thousand7 Notes to the Consolidated Financial Statements General Information The company is incorporated in the Cayman Islands, listed on the HKEX Main Board, primarily engaged in E&M engineering services, with Dr. Ko Lai Hung and Ms. Cheung Mei Lan as ultimate controlling parties - The Company was incorporated on September 20, 2018, in the Cayman Islands and listed on the Main Board of the HKEX since October 18, 20199 - The ultimate controlling parties are Dr. Ko Lai Hung and his wife Ms. Cheung Mei Lan9 - The Group primarily provides E&M engineering services, typically involving the supply, installation, and maintenance of mechanical ventilation and air-conditioning systems10 Application of New and Revised Hong Kong Financial Reporting Standards The Group adopted several HKFRS amendments this year with no significant impact, while new standards like HKFRS 18 are expected to affect profit or loss presentation and future disclosures - Amendments to HKFRS (including HKFRS 16, HKAS 1, HKAS 7, and HKFRS 7) mandatorily effective this year had no significant impact on the Group's financial position and performance12 - New and revised HKFRS issued but not yet effective include HKFRS 9, 7, 10, HKAS 28, 21, and HKFRS 18, among others13 - HKFRS 18 is expected to impact the presentation of the statement of profit or loss and future financial statement disclosures, with the Group currently assessing its detailed effects18 Amendments to HKFRS 9 and HKFRS 7 These amendments primarily concern the classification, measurement, and disclosure of financial instruments, particularly for financial liabilities settled via electronic payment systems and equity investments at fair value through OCI, with no significant impact expected - Amendments to HKFRS 9 added an exception for financial liabilities settled in cash via electronic payment systems to be considered extinguished14 - Amendments to HKFRS 7 require disclosure of fair value gains or losses for equity investments designated at fair value through other comprehensive income, distinguishing between derecognized and year-end held investments15 - These amendments are effective for annual periods beginning on or after January 1, 2026, and are not expected to have a significant impact on the Group's financial position and performance15 HKFRS 18 Presentation and Disclosure in Financial Statements This new standard replaces HKAS 1, introducing new presentation requirements for designated categories and defined subtotals in the statement of profit or loss, and improving disclosure in financial statement notes - The new standard introduces new requirements for presenting designated categories and defined subtotals in the statement of profit or loss, and improves the aggregation and disaggregation of information to be disclosed in the financial statements17 - HKFRS 18 and other amendments are expected to impact the presentation of the statement of profit or loss and future financial statement disclosures, with the Group currently assessing the detailed effects18 Revenue and Segment Information The Group's revenue primarily derives from E&M engineering services in Hong Kong, recognized over time under long-term contracts, with customers mainly private sector owners, construction companies, and contractors, operating as a single reportable segment - The Group's revenue is derived from E&M engineering services typically provided in Hong Kong under long-term contracts and recognized over time19 - Customers are primarily private sector owners, construction companies, and contractors in Hong Kong19 - The Group operates as a single reportable and operating segment22 Transaction Price Allocated to Remaining Performance Obligations As of March 31, 2025, the transaction price allocated to remaining performance obligations was HKD 849,196 thousand, a decrease from last year, with most expected to be recognized as revenue within one year Transaction Price Allocated to Remaining Performance Obligations | Period | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Within one year | 504,844 | 478,504 | | More than one year but not more than two years | 280,374 | 395,517 | | More than two years | 63,978 | 52,138 | | Total | 849,196 | 926,159 | - The total amount in 2025 decreased by approximately 8.3% compared to 202422 Other Income, Gains and Losses, Net Other income, gains and losses, net significantly increased in 2025, primarily due to higher interest income, net gain on disposal of property, plant and equipment, gain on waiver of amount due from a non-controlling interest of a subsidiary, and fair value gains on financial assets at FVTPL Composition of Other Income, Gains and Losses, Net | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest income | 1,472 | 839 | | Net gain on disposal of property, plant and equipment | 645 | 20 | | Fair value gains on financial assets at fair value through profit or loss | 540 | – | | Gain on waiver of amount due from a non-controlling interest of a subsidiary | 1,205 | – | | Others | 1,423 | 2,984 | | Total | 6,009 | 4,064 | Finance Costs Finance costs decreased in 2025, mainly due to lower interest on bank loans and lease liabilities Composition of Finance Costs | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank loans | 865 | 1,308 | | Interest on lease liabilities | 253 | 414 | | Total | 1,118 | 1,722 | Profit Before Tax Profit before tax in 2025 was primarily affected by increased staff costs, reduced donations, and changes in depreciation expenses - Total staff costs increased from HKD 94,084 thousand in 2024 to HKD 101,439 thousand in 202525 - Donations significantly decreased from HKD 3,667 thousand in 2024 to HKD 1,420 thousand in 202525 - Depreciation of right-of-use assets decreased from HKD 5,139 thousand in 2024 to HKD 4,061 thousand in 202525 Income Tax Expense Income tax expense increased in 2025, consistent with the Group's overall profitability growth, and the Hong Kong Profits Tax two-tiered rates continued to apply Income Tax Expense | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong Profits Tax - Current year | 10,174 | 8,856 | | Hong Kong Profits Tax - Deferred tax | (137) | (496) | | Total | 10,037 | 8,381 | - Income tax expense increased by 19.8%, consistent with the Group's overall increase in profitability for the year2544 - The Group's wholly-owned subsidiary, Jetta, is subject to the Hong Kong Profits Tax two-tiered rates, with the first HKD 2 million of assessable profits taxed at 8.25% and the remainder at 16.5%25 Dividends Total ordinary share dividends declared in 2025 decreased, but the final dividend proposed by the Board after the reporting period increased Ordinary Share Dividends Declared During the Year | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | 2024 Final Dividend (HKD 1.3 cents per share) | 10,541 | 12,800 (2023 Final Dividend) | | 2025 Interim Dividend (HKD 0.6 cents per share) | 4,865 | 5,600 (2024 Interim Dividend) | | Total | 15,406 | 18,400 | - After the reporting period, the Board recommended a final dividend of HKD 1.4 cents per ordinary share for the year ended March 31, 2025, totaling HKD 11,352 thousand (2024: HKD 1.3 cents, HKD 10,541 thousand)26 Earnings Per Share Both basic and diluted earnings per share increased in 2025, reflecting the rise in profit attributable to owners of the Company Earnings Per Share Data | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for calculation of basic and diluted EPS (HKD thousands) | 46,253 | 40,792 | | Basic Earnings Per Share (HK cents) | 5.77 | 5.10 | | Diluted Earnings Per Share (HK cents) | 5.75 | 5.09 | Trade and Other Receivables, Deposits and Prepayments The total of trade and other receivables, deposits, and prepayments significantly increased in 2025, primarily due to growth in trade receivables and prepayments for materials and subcontracting fees - The total increased by 42.3% from HKD 85,879 thousand as of March 31, 2024, to HKD 122,164 thousand as of March 31, 20252846 - Trade receivables (net of allowance for credit losses) increased by 52.3% to HKD 107,546 thousand, mainly due to accelerated construction progress of the Kai Tak residential development project, hospital E&M installation project, and completion of certain representative projects2846 Ageing Analysis of Trade Receivables (2025) | Ageing | Amount (HKD thousands) | | :--- | :--- | | 0 to 30 days | 52,029 | | 31 to 90 days | 43,102 | | 91 to 180 days | 3,045 | | Over 180 days | 10,589 | Trade and Retention Payables and Accruals The total of trade and retention payables and accruals significantly increased in 2025, driven by growth in trade payables and retention money payable - The total increased by 41.2% from HKD 58,683 thousand as of March 31, 2024, to HKD 82,843 thousand as of March 31, 20253352 - Trade payables increased by 71.4% to HKD 50,388 thousand, mainly representing amounts due to major suppliers and subcontractors due to accelerated project progress and increased materials and subcontracting services near the reporting period end3353 Ageing Analysis of Trade Payables (2025) | Ageing | Amount (HKD thousands) | | :--- | :--- | | 0 to 30 days | 34,050 | | 31 to 90 days | 13,364 | | Over 180 days | 2,974 | Bank Loans Total bank loans increased in 2025, primarily due to short-term loans obtained to enhance liquidity, with all bank loans classified as current liabilities Bank Loans | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Bank loans, secured and guaranteed | 26,635 | 23,594 | - Bank loans increased by 12.9%, mainly due to a short-term loan obtained during the year to enhance liquidity3554 - All bank loans are classified as current liabilities because banks can revise, cancel, or suspend facilities at their discretion without prior notice56 Share Capital As of March 31, 2025, the company's issued and fully paid ordinary share capital remained stable with no new issuances Issued and Fully Paid Ordinary Shares | Number of Shares | HKD thousands | | :--- | :--- | | 810,827,000 | 8,108 | - Issued and fully paid ordinary share capital remained unchanged from March 31, 202435 Management Discussion and Analysis Business Review The Group successfully transitioned from residential-focused projects to a balanced portfolio including public works, expanding into technology innovation and inbound consultancy services, particularly AI-driven solutions and assisting mainland students in Hong Kong - The Group has strategically transitioned from primarily focusing on residential projects to a more balanced portfolio including residential developments and public works, securing key public sector contracts such as a large hospital E&M project and a government complex E&M installation project36 - The Group continues to expand its business in technology innovation, showcasing its AI Smart Health Management System and SafeSwim Smart Drowning Detection System, developed in collaboration with The Hong Kong Polytechnic University, at the 2025 Hong Kong International Innovation and Technology Exhibition37 - The Group has expanded its inbound consultancy services, focusing on assisting mainland students to study in Hong Kong, supporting the government's efforts to establish the Greater Bay Area as an education hub and foster talent development38 Financial Performance Analysis The Group achieved slight revenue growth, stable gross margin, significantly reduced administrative expenses, increased income tax expense consistent with profitability, and a slight increase in profit and total comprehensive income attributable to owners of the Company in FY2025 Revenue Group revenue slightly increased by 0.5%, reaching HKD 556,417 thousand, reflecting financial stability during its business transformation - Revenue increased by approximately HKD 2,880 thousand or 0.5% from approximately HKD 553,537 thousand last year to approximately HKD 556,417 thousand this year39 - Revenue growth reflects the Group's strategic adaptation to the macroeconomic environment and timely robust execution, ensuring financial stability during changes39 Cost of Services Cost of services slightly increased by 0.5%, largely consistent with revenue growth, primarily comprising material costs and subcontracting fees - Cost of services increased by approximately HKD 2,189 thousand or 0.5% from approximately HKD 465,703 thousand last year to approximately HKD 467,892 thousand this year40 - Cost of services primarily refers to material costs (e.g., mechanical ventilation and air-conditioning system components) and subcontracting fees for completing on-site works40 Gross Profit and Gross Margin Gross profit slightly increased by 0.8%, with gross margin remaining stable at 15.9%, reflecting the combined effect of higher-margin project completions and lower-margin public works - Gross profit increased by approximately HKD 691 thousand or 0.8% from approximately HKD 87,834 thousand last year to approximately HKD 88,525 thousand this year41 - The gross margin for the year remained at 15.9% compared to last year, due to the completion of higher-margin projects and the expected lower gross margin of public works41 Administrative Expenses Administrative expenses significantly decreased by 14.2%, primarily due to reduced donations and depreciation of right-of-use assets - Administrative expenses decreased by approximately HKD 5,793 thousand or 14.2% from approximately HKD 40,670 thousand last year to approximately HKD 34,877 thousand this year42 - The decrease in administrative expenses was mainly due to reduced donations and depreciation of right-of-use assets during the year42 Other Comprehensive Expenses The Group made a strategic cornerstone investment during the year, classified as fair value through other comprehensive income, resulting in fair value fluctuations recognized in other comprehensive income - The Group has made a strategic investment as a cornerstone investor, classifying the investment as fair value through other comprehensive income, ensuring fair value fluctuations are recognized in other comprehensive income rather than affecting profit or loss43 Income Tax Expense Income tax expense increased by 19.8%, consistent with the Group's overall profitability growth for the year - Income tax expense increased by approximately HKD 1,656 thousand or 19.8% from approximately HKD 8,381 thousand last year to approximately HKD 10,037 thousand this year44 - The increase in income tax expense is consistent with the Group's overall increase in profitability for the year44 Profit and Total Comprehensive Income Attributable to Owners of the Company Profit and total comprehensive income attributable to owners of the Company slightly increased, primarily due to higher profit for the year and the net effect of fair value changes in cornerstone investments - Profit and total comprehensive income attributable to owners of the Group were approximately HKD 42,113 thousand (2025) and HKD 40,792 thousand (2024) respectively45 - The slight increase was mainly due to the aforementioned increase in profit for the year and the net effect of fair value changes in the Group's cornerstone investments45 Financial Position Analysis The Group's financial position shows growth in both current assets and liabilities, with an increase in cash and cash equivalents, reflecting business expansion and effective receivables control measures Trade and Other Receivables, Deposits and Prepayments The total of trade and other receivables, deposits, and prepayments significantly increased by 42.3%, driven by growth in trade receivables and prepayments for materials and subcontracting fees, reflecting accelerated project construction progress - Trade and other receivables, deposits and prepayments increased by approximately HKD 36,285 thousand or 42.3% from approximately HKD 85,879 thousand as of March 31, 2024, to approximately HKD 122,164 thousand as of March 31, 202546 - Trade receivables (net of allowance for credit losses) increased by 52.3% to HKD 107,546 thousand, mainly due to accelerated construction progress of the Kai Tak residential development project, hospital E&M installation project, and completion of certain representative projects46 - Prepayments for materials and subcontracting fees increased by 25.6% to HKD 9,008 thousand, primarily due to prepayments made to subcontractors for their services47 Property, Plant and Equipment Property, plant and equipment decreased by 8.9%, mainly due to the disposal of a vehicle during the year - Property, plant and equipment decreased by approximately HKD 6,081 thousand or 8.9% from approximately HKD 68,227 thousand as of March 31, 2024, to approximately HKD 62,146 thousand as of March 31, 202548 - The decrease was mainly due to the disposal of a vehicle by the Group during the year48 Contract Assets and Liabilities Contract assets increased by 8.4% due to more new contract works and improved residential project progress; contract liabilities significantly increased by 118.0% due to the completion of certain representative projects certified by architects - Contract assets increased by approximately HKD 20,262 thousand or 8.4% from approximately HKD 242,049 thousand as of March 31, 2024, to approximately HKD 262,311 thousand as of March 31, 2025, mainly due to an increase in new contract works accepted and improved progress of Kai Tak and Tin Shui Wai residential projects50 - Contract liabilities increased by approximately HKD 8,015 thousand or 118.0% from approximately HKD 6,791 thousand as of March 31, 2024, to approximately HKD 14,806 thousand as of March 31, 2025, mainly due to the completion of certain representative projects certified by architects during the year50 Pledged Bank Balances and Cash and Cash Equivalents Pledged bank balances and cash and cash equivalents increased by 13.6%, primarily due to enhanced receivables control measures and settlement of significant projects - Pledged bank balances and cash and cash equivalents increased by approximately HKD 13,464 thousand or 13.6% from approximately HKD 98,933 thousand as of March 31, 2024, to approximately HKD 112,397 thousand as of March 31, 202551 - The increase was mainly due to enhanced receivables control measures implemented by the Group to minimize financial risks by improving bank balances, and the settlement of certain significant projects during the year51 Trade and Retention Payables and Accruals The total of trade and retention payables and accruals increased by 41.2%, driven by growth in trade payables and retention money payable, reflecting increased materials and subcontracting services due to accelerated project progress - Trade and retention payables and accruals increased by approximately HKD 24,160 thousand or 41.2% from approximately HKD 58,683 thousand as of March 31, 2024, to approximately HKD 82,843 thousand as of March 31, 202552 - Trade payables increased by 71.4% to HKD 50,388 thousand, mainly representing amounts due to major suppliers and subcontractors due to accelerated project progress and increased materials and subcontracting services near the reporting period end53 - Retention money payable increased by 30.4% to HKD 19,828 thousand, mainly due to accelerated progress of the Group's subcontractors' projects for installing mechanical ventilation and air-conditioning systems in Kai Tak and Tin Shui Wai53 Bank Loans Bank loans increased by 12.9%, primarily due to short-term loans obtained to enhance liquidity, secured by Group assets and corporate guarantees - Bank loans increased by approximately HKD 3,041 thousand or 12.9% from approximately HKD 23,594 thousand as of March 31, 2024, to approximately HKD 26,635 thousand as of March 31, 202554 - The increase in bank loans was mainly due to a short-term loan obtained during the year to enhance liquidity54 Bank Loans by Scheduled Repayment Date | Period | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Within one year | 6,468 | 1,934 | | More than one year but not more than two years | 1,504 | 1,413 | | More than two years but not more than five years | 4,733 | 6,100 | | More than five years | 13,930 | 14,147 | | Total | 26,635 | 23,594 | Future Prospects The Group anticipates consolidating its role in Hong Kong's urban transformation in 2025 through engineering excellence, technological innovation, and talent development, actively participating in public works and infrastructure projects in the Northern Metropolis and New Territories North, and continuing to invest in AI-driven engineering applications and expanding education and inbound consultancy services - The Group will actively seek opportunities in public works and infrastructure projects in the Northern Metropolis and New Territories North, including hospitals, government complexes, and smart city development projects59 - The Group will continue to invest in AI-driven engineering applications, building upon the success of its AI Smart Health Management System and SafeSwim Smart Drowning Detection System60 - The Group will expand its education and inbound consultancy services, focusing on assisting mainland students to study in Hong Kong, supporting government efforts to attract young talent to the Northern Metropolis and foster a knowledge-based economy61 Liquidity and Financial Resources The Group's working capital is primarily financed by internal resources and bank loans, maintaining a healthy current ratio, and is committed to a robust financial position - As of March 31, 2025, the Group's current ratio (calculated as current assets divided by current liabilities) was approximately 3.76 times (March 31, 2024: approximately 4.31 times)62 - The Group generally funds its daily operations through internally generated cash flows and external borrowings62 Financial Policy The Group regularly monitors liquidity needs to ensure sufficient cash reserves are maintained to meet both short-term and long-term liquidity requirements and manage liquidity risk - The Group's policy is to regularly monitor current and anticipated liquidity needs to ensure sufficient cash reserves are maintained to meet its short-term and long-term liquidity requirements63 Gearing Ratio The Group's gearing ratio decreased, indicating a lower level of financial leverage - As of March 31, 2025, the Group's gearing ratio was approximately 6.8% (March 31, 2024: approximately 8.5%)64 Capital Expenditure Capital expenditure significantly decreased in 2025, primarily for leasehold improvements, furniture, fixtures and equipment, and motor vehicles and yachts - During the year, the Group incurred cash outflows of approximately HKD 52 thousand for leasehold improvements, furniture, fixtures and equipment, and motor vehicles and yachts (2024: HKD 13,022 thousand)65 Capital Commitments As of March 31, 2025, the Group had no significant capital commitments - As of March 31, 2025, the Group had no significant capital commitments (March 31, 2024: HKD 353 thousand)66 Contingent Liabilities The Group's contingent liabilities primarily consist of performance guarantees issued by banks to customers, secured by Group assets - As of March 31, 2025, performance guarantees totaling HKD 96,486 thousand (2024: HKD 94,428 thousand) were issued by banks to the Group's customers67 - The performance guarantees are secured by two parking spaces, an office property, and a corporate guarantee provided by the Company to the banks67 Events After the Reporting Period As of the announcement date, there were no significant post-reporting period events requiring disclosure - No significant post-reporting period events requiring disclosure have occurred from March 31, 2025, up to the date of this announcement68 Pledge of the Group's Assets Group assets, including an office property, motor vehicles, refundable rental deposits, parking spaces, and pledged bank balances, are pledged as security for lease liabilities and bank financing - As of March 31, 2025, one of the Group's office properties, certain motor vehicles, refundable rental deposits, two parking spaces, and pledged bank balances were pledged as collateral for lease liabilities and bank financing69 Material Investments, Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the year, the Group had no other material investments, acquisitions, or disposals apart from those disclosed - During the year, apart from those disclosed in this announcement, the Group had no other material investments, significant acquisitions, or disposals of subsidiaries, associates, and joint ventures70 Future Plans for Material Investments and Capital Assets As of March 31, 2025, the Group had no other future plans for material investments or capital assets - As of March 31, 2025, apart from those disclosed in this announcement, the Group had no other future plans for material investments or capital assets71 Foreign Exchange Risk Management The Group's monetary assets, liabilities, and transactions are primarily denominated in HKD, foreign currency risk is considered insignificant, and there is currently no foreign currency hedging policy, but management will closely monitor it - The Group's monetary assets, liabilities, and transactions are primarily denominated in HKD, and it is not exposed to significant foreign currency risk arising from monetary assets and liabilities denominated in currencies other than the functional currency of each group entity72 - The Group currently has no foreign currency hedging policy as foreign currency risk is considered insignificant; however, management will continue to closely monitor the Group's foreign exchange risk and consider hedging significant foreign exchange exposures when necessary73 Credit Risk The Group maintains credit risk at a reasonably low level by assessing customer credit quality, regularly reviewing the recoverability of receivables, and closely monitoring customer financial conditions - The Group's major customers include renowned property developers and major contractors74 - The Group has closely monitored and strengthened its collection measures and adopted prudent credit policies to mitigate credit risk, aiming to keep the Group's credit risk at a reasonably low level74 Employees and Remuneration Policy The Group increased its headcount and total staff costs, offering competitive remuneration, training, salary increments, discretionary bonuses, and share options to attract and retain talent - As of March 31, 2025, the Group employed 238 employees (March 31, 2024: 197 employees), with total staff costs (including direct labor costs) for the year amounting to approximately HKD 101,439 thousand (last year: approximately HKD 94,084 thousand)75 - The Group provides adequate job training to employees and offers salary increments, discretionary bonuses, and share options based on individual performance assessments and market conditions75 - As of March 31, 2025, the total number of shares available for issue under the Share Award Scheme was approximately 77,191,790 shares (representing approximately 9.52% of the total issued shares as of March 31, 2025)77 Competing Interests During the year, no directors, controlling shareholders, or their close associates held interests in any business directly or indirectly competing or potentially competing with the Group's business - During the year, no directors or controlling shareholders or their close associates had any interests in any business directly or indirectly competing or potentially competing with the Group's business79 Final Dividend The Board resolved to recommend a final dividend of HKD 1.4 cents per share for the year, totaling approximately HKD 11,352 thousand, expected to be paid on or around October 20, 2025, pending shareholder approval at the AGM - The Board resolved to recommend a final dividend of HKD 1.4 cents per ordinary share (2024: HKD 1.3 cents per share) for the year to shareholders whose names appear on the register of members on September 29, 2025, amounting to approximately HKD 11,352 thousand (2024: HKD 10,541 thousand)80 - Subject to the passing of the relevant resolution at the 2025 Annual General Meeting, the final dividend is expected to be paid to shareholders on or around Monday, October 20, 202580 Closure of Register of Members To determine shareholders' eligibility to attend the 2025 Annual General Meeting and receive the final dividend, the company will suspend its register of members twice For the 2025 Annual General Meeting The register of members will be closed from September 15, 2025, to September 18, 2025, to determine eligibility for attending and voting at the Annual General Meeting - The register of members will be closed from Monday, September 15, 2025, to Thursday, September 18, 2025 (both dates inclusive)81 - To be eligible to attend and vote at the 2025 Annual General Meeting, all share transfer documents, together with the relevant share certificates and transfer forms, must be lodged by 4:30 p.m. on Friday, September 12, 202581 For the Proposed Final Dividend The register of members will be closed from September 25, 2025, to September 29, 2025, to determine eligibility for receiving the final dividend - The register of members will be closed from Thursday, September 25, 2025, to Monday, September 29, 2025 (both dates inclusive)82 - To be eligible for the final dividend, all share transfer documents, together with the relevant share certificates and transfer forms, must be lodged by 4:30 p.m. on Wednesday, September 24, 202582 Other Information Purchase, Sale or Redemption of the Company's Listed Securities During the year, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any shares during the year83 Sufficiency of Public Float As of the announcement date, the company has maintained a sufficient public float as required by the HKEX Listing Rules - As of the date of this announcement, the Company has maintained a sufficient public float as required by the Listing Rules of the Stock Exchange during the year and up to the date of this announcement84 Compliance with the Corporate Governance Code in the Listing Rules The company complied with the applicable code provisions of the Corporate Governance Code, except for the combined roles of Chairman and CEO, which the Board believes benefits management and business development with sufficient safeguards for power balance - During the year, the Company complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules, save for code provision C.2.1, which stipulates that the roles of chairman and chief executive officer should be separate and should not be performed by the same individual85 - The Board believes that Dr. Ko's dual role as Chairman and Chief Executive Officer benefits the Group's management and business development, and with three independent non-executive directors reviewing key decisions and providing independent advice, there are sufficient safeguards to ensure a proper balance of power within the Board86 Standard of Conduct for Securities Transactions by Directors of Listed Issuers The company adopted the Standard Code as its code of conduct for directors' securities transactions, and all directors confirmed compliance throughout the year - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its code of conduct regarding directors' securities transactions87 - The Company has made specific enquiries to all Directors, and they all confirmed that they have complied with the required standards set out in the Model Code throughout the year87 Review by Audit Committee The Audit Committee discussed and reviewed the Group's accounting principles, financial information, and full-year results with management and the independent auditor - The Audit Committee has discussed with the Group's management and the Company's independent auditor, Deloitte Touche Tohmatsu, and has reviewed the accounting principles and policies adopted by the Group, the Group's financial information, and the Group's full-year results for the year88 Scope of Work of Deloitte Touche Tohmatsu Independent auditor Deloitte Touche Tohmatsu reconciled the financial figures in the preliminary announcement with the audited consolidated financial statements, but their work does not constitute an assurance engagement - The figures in the preliminary announcement regarding the Group's consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and their related notes for the year have been agreed by the Group's auditor, Deloitte Touche Tohmatsu, to the amounts set out in the Group's audited consolidated financial statements for the year89 - The work performed by Deloitte Touche Tohmatsu in this regard does not constitute an assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements, or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants, and consequently, Deloitte Touche Tohmatsu has not expressed any assurance opinion on the preliminary announcement89 Publication of Annual Results Announcement and Annual Report This announcement is published on the company's and HKEX websites, and the annual report will be dispatched to shareholders and made available for inspection in due course - This announcement is published on the Company's website (http://chittathk.com) and the HKEX website (https://www.hkexnews.hk)[90](index=90&type=chunk) - The Company's annual report for the year will be dispatched to shareholders and made available on the respective websites of the HKEX and the Company in due course90 Acknowledgement The Board extends its sincere gratitude to the Group's management and all employees for their diligent dedication, and to its shareholders, business partners, and other professionals for their support during the year - The Board extends its sincere gratitude to the Group's management and all employees for their diligent dedication, and to its shareholders, business partners, and other professionals for their support during the year91