Financial Performance - The group's revenue decreased by approximately 7.0% from RMB 682.3 million for the year ended March 31, 2024, to RMB 634.6 million for the year ended March 31, 2025[12]. - Gross profit fell by about 12.0% from RMB 80.8 million to RMB 71.1 million, attributed to economic slowdown and a downturn in the construction industry[12]. - The net loss increased by RMB 24.8 million or 26.0%, resulting in a total net loss of RMB 120.5 million for the year ended March 31, 2025[12]. - Revenue decreased by approximately 7.0% to RMB 634.6 million for the year ending March 31, 2025, down from RMB 682.3 million for the year ending March 31, 2024, primarily due to a reduction in total tonnage usage[23]. - The overall gross profit decreased by approximately 12.0% to RMB 71.1 million for the year ending March 31, 2025, with a gross profit margin declining from approximately 11.8% to 11.2%[25]. - The company recorded a net loss of approximately RMB 120.5 million for the year ending March 31, 2025, an increase of about 26.0% compared to a net loss of approximately RMB 95.6 million for the year ending March 31, 2024[21][33]. Project and Operations - As of March 31, 2025, the group had 256 ongoing projects with a total contract value of approximately RMB 721.3 million and 38 projects on hand with an estimated contract value of RMB 78.7 million[12]. - The group managed a total of 1,180 tower cranes to meet the demand for professional EPC projects across China during the fiscal year[20]. - The average monthly service price per ton for tower cranes decreased from RMB 215 to RMB 202, reflecting market pressures[12]. - The group is focusing on clean energy projects and international market expansion as dual core growth engines for future development[14]. - The group is actively optimizing its business structure and reducing reliance on the real estate sector in response to market conditions[13][19]. Research and Development - The group holds 187 registered patents related to tower crane technology as of March 31, 2025, enhancing its competitive edge in project bidding[15][20]. - Research and development expenses decreased from approximately RMB 19.4 million to RMB 15.4 million for the year ending March 31, 2025, primarily due to a reduction in patent development projects[27]. - The group is investing in digital management platforms and new tower crane technology solutions to enhance service delivery capabilities[20]. Financial Management - Other income increased by approximately RMB 1.1 million or 38.9% to RMB 3.9 million for the year ending March 31, 2025, mainly due to management fees from Indonesian clients[26]. - Financing costs decreased by approximately RMB 2.2 million or 3.4% to RMB 62.3 million for the year ending March 31, 2025, mainly due to a decline in interest rates[31]. - The current ratio as of March 31, 2025, was 1.12, down from 1.44 as of March 31, 2024, indicating a decrease in liquidity[36]. - Lease liabilities increased by approximately 67.8% to about RMB 141.7 million as of March 31, 2025, primarily due to an increase in financing leases for tower cranes[41]. - The company has implemented measures to recover aged receivables, including negotiating repayment plans and legal collection actions[50]. - The company provides flexible payment options to clients, such as accepting various types of notes to ease immediate cash payment pressure[53]. - The company’s credit risk management involves monitoring trade receivables on a project-by-project basis and accelerating collections through operational adjustments[50]. Corporate Governance - The company emphasizes maintaining high standards of corporate governance to ensure the integrity and transparency of information disclosure[92]. - The company emphasizes its core values of "Integrity," "Safety," and "Excellence" to ensure sustainable operations and customer trust[93]. - The board of directors is committed to maintaining robust corporate governance practices, ensuring accountability and effective management[95]. - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions up to the report date[96]. - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors, ensuring a balanced composition[100]. - Independent non-executive directors have confirmed their independence according to listing rules, ensuring unbiased decision-making[101]. - The company has established mechanisms to ensure independent viewpoints are provided to the board, enhancing governance quality[104]. - All directors participated in continuous professional development to maintain their knowledge and skills relevant to their responsibilities[106]. Human Resources - As of March 31, 2025, the group employed approximately 677 employees, a decrease of 7.5% from 732 employees as of March 31, 2024[49]. - Total employee benefits expenditure for the year ended March 31, 2025, was RMB 782 million, a reduction of 11.7% compared to the previous year[49]. - The company is committed to maintaining gender diversity in hiring senior staff to ensure a diverse board composition in the future[109]. - The board of directors has adopted a diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance business development and board performance[108]. Related Party Transactions - For the fiscal year ending March 31, 2025, the company reported a total transaction amount of RMB 20.5 million under the ongoing related party transactions with Yongmao Group[192]. - The maximum annual limit for the ongoing related party transactions with Yongmao Group is set at RMB 100 million for the fiscal year ending March 31, 2025[192]. - The company has entered into a continuous related party transaction agreement with Yongmao Group, which includes procurement and leasing of tower cranes and related components[192]. - The company has confirmed that all independent non-executive directors have reviewed the ongoing related party transactions, ensuring they are conducted in the ordinary course of business and on fair terms[194]. Risk Management and Compliance - The company has implemented a risk management system to identify and mitigate significant risks related to its business strategy and operations[136]. - The internal control system aims to provide reasonable assurance against material misstatements or losses, ensuring effective and efficient operations[137]. - The company has established an internal anti-corruption policy to prevent bribery and corruption among directors and employees[139]. - The board has adopted a whistleblowing policy to allow employees and third parties to report concerns confidentially without fear of retaliation[140]. - The internal audit department regularly monitors key controls and procedures to ensure the internal control system operates as planned[141]. - The board has conducted a comprehensive review of the risk management and internal control systems, finding them effective and adequate[142]. - The company has established procedures to handle and communicate insider information to maintain confidentiality[143]. Shareholder Information - The company reported a total distributable reserve of approximately RMB 418.9 million as of March 31, 2025, down from RMB 462.4 million as of March 31, 2024[170]. - The board has decided not to declare a final dividend for the year ending March 31, 2025, consistent with the previous year[159]. - The company held its annual general meeting on September 26, 2025, to provide shareholders with an opportunity to communicate with the board[160]. - The company’s main contact for shareholder inquiries is the executive director, Mr. Qiu Guoshan[145]. - The company’s website provides comprehensive and accessible information for shareholders and investors regarding its latest developments[146].
达丰设备(02153) - 2025 - 年度财报