怡康泰工程集团(08445) - 2025 - 年度财报

Corporate Information This section provides basic corporate details and contact information for the company Chairman's Statement The Chairman reviews the financial year's performance, noting slight revenue growth and a narrowed net loss, while outlining a future strategy focused on prudent project selection and operational efficiency Financial Highlights | Indicator | FY2025 (HK$ million) | FY2024 (HK$ million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Revenue | 325.6 | 320.7 | +1.5% | | Net Loss | 9.5 | 11.8 | -19.5% | - The Board attributes the reduced net loss primarily to increased gross profit and decreased administrative and other operating expenses[23] - Future strategy will focus on prudent project selection, enhancing operational efficiency, expanding equipment, broadening the customer base, and exploring business opportunities outside Hong Kong to achieve diversification and deliver greater shareholder returns[24][25][26] Management Discussion and Analysis This section analyzes the Group's business, market outlook, risks, and financial performance, highlighting a narrowed net loss to HK$9.5 million and stable financial position with no bank borrowings Business Review and Outlook The Group's core business is plastering works subcontracting in Hong Kong, facing intense market competition that may pressure gross margins, but management remains confident in maintaining its market share - The Group's main challenge is intense market competition, which could lead to fewer successful bids, lower contract values, and pressure on gross profit margins[34] - The Group will leverage its strong industry reputation and experienced management team to deliver high-quality works to counter competition and seek expansion[35] Principal Risks and Uncertainties The Group's operations face key risks including reliance on non-recurring projects, potential losses from inaccurate cost estimations, and liquidity impacts from delayed customer payments - Key risks include: - Revenue dependence on non-recurring projects, where failure to secure new contracts will impact performance - Inaccurate project cost estimations could lead to significant losses - Delayed payments from customers could adversely affect liquidity - Performance is closely tied to the overall trends of the plastering works industry[40] Financial Review The Group's financial performance improved in FY2025, with revenue up 1.5% to HK$325.6 million, gross profit up 56.3%, and the annual loss narrowing to HK$9.5 million Financial Performance | Financial Indicator | FY2025 (HK$ million) | FY2024 (HK$ million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 325.6 | 320.7 | +1.5% | | Gross Profit | 2.5 | 1.6 | +56.3% | | Gross Profit Margin | 0.8% | 0.5% | +0.3pp | | Administrative & Other Operating Expenses | 11.5 | 12.5 | -8.0% | | Loss for the Year | 9.5 | 11.8 | -19.5% | - Revenue growth was mainly attributable to an increase in awarded projects, while the reduced loss benefited from higher revenue and lower administrative expenses[45][54] Liquidity | Liquidity Indicator (as at March 31) | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 13.0 | 29.7 | | Pledged Bank Deposits | 5.5 | 5.4 | | Bank Borrowings | 0 | 0 | | Gearing Ratio | 0% | 0% | Use of Net Proceeds from 2021 Rights Issue (as at March 31, 2025) | Planned Use | Planned (HK$ million) | Used (HK$ million) | Unused (HK$ million) | | :--- | :--- | :--- | :--- | | Expansion and development of existing business | 7.2 | 7.2 | 0 | | Future investment opportunities | 5.5 | 0.5 | 5.0 | | General working capital | 1.1 | 1.1 | 0 | | Total | 13.8 | 8.8 | 5.0 | Employee Information As of March 31, 2025, the Group had 42 full-time employees in Hong Kong, with total staff costs for the year amounting to approximately HK$19.6 million Employee Data | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Number of Full-time Employees | 42 | 67 | | Total Staff Costs (HK$ million) | 19.6 | 23.3 | Directors and Senior Management This section details the backgrounds of the Board of Directors and senior management, led by co-founders Mr Tse Chun Yuen and Mr Tse Chun Kon, who have over 41 years of industry experience - Executive Director Mr Tse Chun Yuen (Chairman): Aged 75, a co-founder of the Group, is responsible for overall strategic planning, business development, and corporate management with over 41 years of experience in the plastering industry[101][102] - Executive Director Mr Tse Chun Kon (CEO): Aged 73, a co-founder of the Group, is responsible for formulating corporate and business strategies and making major operational decisions with over 41 years of experience in the plastering industry[105][110] - The team of Independent Non-executive Directors, comprising Mr Wong Yiu Kwong, Ms Chung Lai Ling, and Mr Tang Chi Wai, provides independent judgment and professional advice with extensive experience in business management, accounting, and auditing[113][121][123] Corporate Governance Report The company is committed to high standards of corporate governance and has complied with the Corporate Governance Code, with the Board overseeing all major matters assisted by three committees Board Committees The Board has established Remuneration, Nomination, and Audit Committees with clear terms of reference to ensure independent oversight of key corporate functions - Remuneration Committee: Chaired by INED Ms Chung Lai Ling, it advises the Board on the remuneration policies and structure for directors and senior management[224][228] - Nomination Committee: Chaired by Chairman Mr Tse Chun Yuen, it reviews the Board's composition, assesses director independence, and makes recommendations on director appointments[231][232] - Audit Committee: Chaired by INED Mr Tang Chi Wai, it reviews financial information, internal control and risk management systems, and communicates with external auditors[240][242] Risk Management and Internal Control The Board holds overall responsibility for the Group's risk management and internal control systems, conducting an annual effectiveness review and engaging external consultants to ensure adequacy - The Board confirms its full responsibility for overseeing the company's internal control, financial control, and risk management systems, reviewing their effectiveness at least annually[263] - During the reporting period, the company engaged an external independent consulting firm to review the effectiveness of its risk management and internal control systems, with recommendations being implemented to enhance internal controls[267] - The company currently has no internal audit function, as the Audit Committee and the Board consider the existing internal control system effective, but the need for such a function is reviewed annually[272] Environmental, Social and Governance Report This report outlines the Group's ESG strategies and performance, covering environmental impact reduction, employee welfare, supply chain management, and anti-corruption measures Environmental The Group is committed to minimizing its environmental impact through its HSEQ policy, resulting in a reduction in total greenhouse gas emissions and electricity consumption during the reporting period Greenhouse Gas Emissions (Scope 1 & 2) | GHG Emissions | FY2025 | FY2024 | | :--- | :--- | :--- | | Total Emissions (kg CO2e) | 29,874.79 | 33,853.31 | | Emission Intensity (kg CO2e/project) | 678.97 | 769.39 | Resource Consumption | Resource Use | FY2025 | FY2024 | | :--- | :--- | :--- | | Electricity Consumption (kWh) | 14,490 | 15,252 | | Total Water Consumption (m³) | 59 | 69 | - The Group has established standard control procedures for air, waste, noise, and water pollution to ensure compliance with relevant environmental regulations[312][314][316][317] Social The Group prioritizes employee rights and safety, manages its supply chain responsibly, maintains a strict anti-corruption policy, and engages in community support Employee Data (as at March 31) | Employee Data | 2025 | 2024 | | :--- | :--- | :--- | | Total Employees | 61 | 67 | | Employee Turnover Rate | 31% | 19% | Health and Safety | Health and Safety | FY2025 | FY2024 | | :--- | :--- | :--- | | Lost Days Due to Work Injury | 2,665 | 1,621 | | Number of Work Injury Cases | 7 | 4 | | Number of Work-related Fatalities | 0 | 0 | Training and Development | Training and Development | FY2025 | FY2024 | | :--- | :--- | :--- | | Percentage of Employees Trained | 41% | 30% | | Average Training Hours per Employee | 7.20 | 6.15 | - The Group maintains strict supply chain management with 29 approved suppliers and 869 approved subcontractors as of March 31, 2025, all located in Hong Kong, prioritizing partners with environmental and social certifications[393][394] - The Group has a clear anti-corruption policy and whistle-blowing system, with no cases of bribery, extortion, fraud, or money laundering identified during the reporting period[405][412] Directors' Report This report summarizes the company's principal activities and financial status for the year, highlighting a high customer concentration and confirming no final dividend will be paid - The Board does not recommend the payment of a final dividend for the year ended March 31, 2025[434] - The Group has a high customer concentration, with the largest customer accounting for 35.4% of total revenue and the top five customers contributing 94.9% in total[459] - Supplier and subcontractor concentration is low, with the largest supplier accounting for 3.4% of total direct costs and the top five combined accounting for 11.5%[460] - Controlling shareholders Mr Tse Chun Yuen and Mr Tse Chun Kon jointly hold 37.99% of the company's shares through Land Noble Holdings Limited[501] Independent Auditor's Report The independent auditor issued an unqualified opinion on the financial statements, confirming they give a true and fair view, while highlighting two key audit matters related to revenue recognition and impairment assessment - The auditor has issued an unqualified opinion on the Group's consolidated financial statements[541] - Key audit matters included: - Revenue recognition from construction services, due to significant judgment involved in estimating contract outcomes and progress - Impairment of contract assets and trade receivables, due to the material balance and management judgment required in the impairment test[547][553] Consolidated Financial Statements This section presents the Group's detailed financial statements for the year ended March 31, 2025, including the income statement, balance sheet, and cash flow statement Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year, the Group recorded revenue of HK$325.6 million and a gross profit of HK$2.5 million, with the loss for the year narrowing to HK$9.5 million Annual Performance | Item (HK$ thousand) | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | 325,629 | 320,746 | | Gross Profit | 2,502 | 1,636 | | Loss before Tax | (9,604) | (11,975) | | Loss for the Year | (9,472) | (11,794) | | Total Comprehensive Expense for the Year | (9,542) | (11,794) | | Basic and Diluted Loss per Share (HK$) | (0.03) | (0.04) | Consolidated Statement of Financial Position As of March 31, 2025, the Group's total assets were HK$93.8 million and net assets were HK$77.6 million, indicating a sound financial position with good short-term solvency Financial Position | Item (HK$ thousand) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 1,626 | 2,180 | | Current Assets | 92,212 | 111,496 | | Total Assets | 93,838 | 113,676 | | Liabilities and Equity | | | | Current Liabilities | 15,633 | 26,497 | | Non-current Liabilities | 608 | 40 | | Total Liabilities | 16,241 | 26,537 | | Net Assets | 77,597 | 87,139 | | Total Equity | 77,597 | 87,139 | Consolidated Statement of Changes in Equity Total equity attributable to owners decreased by HK$9.5 million to HK$77.6 million, primarily due to the total comprehensive expense recorded during the year Equity Movement | Item (HK$ thousand) | Amount | | :--- | :--- | | At April 1, 2024 | 87,139 | | Loss for the year | (9,472) | | Other comprehensive expense | (70) | | At March 31, 2025 | 77,597 | Consolidated Statement of Cash Flows The Group experienced a net cash outflow from operating activities of HK$16.3 million, resulting in a year-end cash and cash equivalents balance of HK$13.0 million Cash Flow Summary | Item (HK$ thousand) | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (16,339) | (18,979) | | Net Cash from/(Used in) Investing Activities | 123 | (975) | | Net Cash (Used in)/from Financing Activities | (488) | 7,596 | | Net Decrease in Cash and Cash Equivalents | (16,704) | (12,358) | | Cash and Cash Equivalents at Beginning of Year | 29,669 | 42,027 | | Cash and Cash Equivalents at End of Year | 12,965 | 29,669 | Notes to the Consolidated Financial Statements This section provides detailed explanations and supplementary information for the financial statements, including accounting policies, estimates, and breakdowns of key items Financial Summary This section presents a five-year summary of the Group's key financial data, showing trends in revenue, profitability, assets, and liabilities from FY2021 to FY2025 Five-Year Financial Summary | Item (HK$ thousand) | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Results | | | | | | | Revenue | 325,629 | 320,746 | 237,211 | 275,626 | 326,662 | | Gross Profit | 2,502 | 1,636 | 1,535 | (23,886) | 3,687 | | Loss before Income Tax | (9,604) | (11,975) | (11,697) | (36,203) | (8,112) | | Assets and Liabilities | | | | | | | Total Assets | 93,838 | 113,676 | 117,095 | 110,320 | 129,280 | | Total Liabilities | (16,241) | (26,537) | (26,182) | (18,064) | (14,385) | | Total Equity Attributable to Owners | 77,597 | 87,139 | 90,913 | 92,256 | 114,895 |