Financial Performance - The company reported a revenue of approximately HKD 808.0 million for the year ending March 31, 2025, representing a significant increase of about 20.3% compared to HKD 671.9 million for the previous year[7]. - The profit attributable to shareholders increased to approximately HKD 4.4 million, up from HKD 3.7 million in the previous year, despite the pressure on gross margin due to intense market competition and a weak economic environment[7]. - For the year ended March 31, 2025, the group's revenue from foundation and site formation works reached approximately HKD 773.7 million, an increase of about HKD 122.5 million or 18.8% compared to approximately HKD 651.2 million for the year ended March 31, 2024[15]. - Revenue from machinery leasing for the year ended March 31, 2025, was approximately HKD 34.3 million, representing an increase of about HKD 13.6 million or 65.7% from approximately HKD 20.7 million for the year ended March 31, 2024[15]. - The group's gross profit for the year ended March 31, 2025, was approximately HKD 42.2 million, with a gross profit margin of about 5.2%, down from a gross profit of approximately HKD 41.3 million and a margin of 6.1% for the previous year[17]. - Administrative expenses increased to approximately HKD 37.6 million for the year ended March 31, 2025, up by about HKD 1.3 million or 3.6% from approximately HKD 36.3 million for the year ended March 31, 2024, primarily due to increased employee costs[19]. - Financial costs surged to approximately HKD 1.8 million for the year ended March 31, 2025, a significant increase of about HKD 1.0 million or 125.0% compared to approximately HKD 0.8 million for the previous year, mainly due to new loans raised[20]. - The group recorded a net profit attributable to owners of approximately HKD 4.4 million for the year ended March 31, 2025, an increase from approximately HKD 3.7 million for the year ended March 31, 2024, despite facing pricing pressure in a competitive market[23]. Project and Contract Management - The company secured 42 new contracts with a total original contract value of approximately HKD 701.4 million and completed 41 projects with an original total contract value of approximately HKD 827.8 million by March 31, 2025[14]. - As of March 31, 2025, the company had 39 projects on hand, including ongoing projects and those awarded but not yet commenced, with a total unbilled revenue of approximately HKD 548.9 million[14]. - The company aims to expand its scope of work beyond subcontracting to become a general contractor in foundation engineering[12]. - The company has been registered as a public works contractor and specialized contractor, enhancing its capabilities in the construction sector[12]. Market Outlook and Strategy - The company remains cautiously optimistic about the construction industry outlook due to ongoing government infrastructure projects and housing supply strategies, despite facing challenges from a competitive market and economic uncertainties[8][13]. - The Hong Kong government plans to sell 8 residential sites, potentially developing around 4,450 units, which may stimulate demand for foundation and site preparation works[8]. - The group continues to manage its financial position prudently and maintains a conservative policy regarding cash and financial management[26]. - The group plans to enhance cost control, strengthen project management, and improve production efficiency to address market challenges[51]. Corporate Governance - The company maintains a high level of corporate governance, which is essential for protecting and enhancing shareholder and stakeholder interests[61]. - The board is committed to upholding high standards of corporate governance and will regularly review the governance policies to reflect the latest developments and shareholder expectations[61]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules and has complied with relevant provisions during the reporting period from April 1, 2024, to March 31, 2025, except for the specific provision C.2.1[62]. - The company is led by Mr. Li Zhuojin, who serves as both Chairman and CEO, ensuring effective operational oversight[63]. - The board consists of five members, including two executive directors and three independent non-executive directors, complying with listing rules[69]. - The company has adopted a standard code of conduct for securities trading, ensuring all directors comply with the regulations during the reporting period[64]. - The company emphasizes a culture of integrity and ethical behavior, with training materials outlining required standards for all new employees[66]. - The board has delegated daily management responsibilities to the management team while retaining decision-making authority on major strategic and financial matters[68]. Employee Management and Development - The total employee cost for the year ending March 31, 2025, was approximately HKD 252.9 million, a significant increase from HKD 191.7 million for the year ending March 31, 2024[48]. - The group employed a total of 493 employees as of March 31, 2025, up from 406 employees as of March 31, 2024, due to increased labor-intensive operations[48]. - The group emphasizes employee training and development, offering various learning opportunities through external courses and internal training programs[167]. - 15% of employees participated in training, with 33% of female employees and 13% of male employees involved, averaging 1.20 hours and 0.24 hours of training respectively[170]. - The group actively promotes gender balance and aims to hire qualified women for all positions to create a more inclusive workplace[157]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes its commitment to sustainable and responsible development, aiming to enhance quality of life through urban and infrastructure construction[120]. - The board has integrated Environmental, Social, and Governance (ESG) principles into the overall risk management and internal control framework[121]. - The management is responsible for executing the ESG strategy, including identifying risks and opportunities related to ESG[122]. - The group actively participates in the "Earth Hour" global initiative, demonstrating commitment to environmental awareness by turning off non-essential lighting for one hour on March 22, 2025[134]. - The group has established a robust environmental management system certified to ISO 14001:2015 standards, ensuring compliance with applicable regulations[134]. - The group recognizes the importance of energy conservation, carbon reduction, and pollution minimization as global priorities in addressing climate change[134]. - The company has implemented various energy-saving initiatives, including prioritizing energy-efficient appliances and optimizing lighting systems[149]. - The company recognizes the impact of climate change and is actively assessing climate-related risks to its operations[153]. Community Engagement and Social Responsibility - The company actively participates in community support initiatives, including the Standard Chartered Hong Kong Marathon to promote health and team cohesion[184]. - The organization contributed to the "Charity Mooncake" campaign, donating HKD 50 for each mooncake sold, benefiting over 160 social welfare organizations[186]. - The company supported various fundraising activities for the Hong Kong Community Chest, focusing on services for children, families, and disadvantaged groups[187]. - The "Green Low Carbon Day" initiative encourages employees to adopt environmentally friendly habits, with proceeds supporting green projects[189]. - The company resumed support for the Oxfam Trailwalker event, raising funds for poverty alleviation and emergency relief projects in multiple regions[191]. Risk Management and Compliance - The company has implemented a risk management and internal control system, supported by the appointment of three independent non-executive directors[63]. - The board is responsible for maintaining adequate risk management and internal control systems to safeguard the company's assets and ensure compliance with applicable laws and regulations[102]. - The company adheres to all relevant environmental laws and regulations in Hong Kong, demonstrating a commitment to responsible environmental management[152]. - The organization has implemented a zero-tolerance policy against corruption, bribery, and fraud, with training provided to management and directors on anti-corruption laws[181]. - No significant legal cases related to bribery or money laundering have been reported during the period[182].
荣智控股(06080) - 2025 - 年度财报