Financial Performance - The total revenue for the fiscal year ending March 31, 2025, was approximately HKD 88.4 million, a decrease of 61.5% compared to the previous year[10] - The gross profit remained around HKD 4.2 million, slightly down from HKD 4.4 million in the previous year[10] - Revenue decreased from approximately HKD 229.9 million for the year ended March 31, 2024, to approximately HKD 88.4 million for the year ended March 31, 2025, a decline of about 61.5%[17] - Direct costs decreased from approximately HKD 225.5 million for the year ended March 31, 2024, to approximately HKD 84.2 million for the year ended March 31, 2025, a decline of about 62.7%[18] - Gross profit for the year ended March 31, 2025, was approximately HKD 4.2 million, compared to approximately HKD 4.4 million for the year ended March 31, 2024, a decrease of about 4.5%[19] - Other income decreased from approximately HKD 2.7 million for the year ended March 31, 2024, to approximately HKD 1.8 million for the year ended March 31, 2025[20] - Administrative expenses for the year ended March 31, 2025, were approximately HKD 16.5 million, similar to approximately HKD 16.3 million for the year ended March 31, 2024[21] - The total loss and comprehensive expenses for the year ended March 31, 2025, increased to approximately HKD 22.5 million from approximately HKD 9.3 million for the year ended March 31, 2024[24] - The company's distributable reserves as of March 31, 2025, amount to approximately HKD 103.1 million, a decrease from approximately HKD 107.9 million in 2024[89] Business Strategy and Market Outlook - The company anticipates a slow recovery in the Hong Kong real estate development industry in 2025, driven by stable interest rates and government stimulus measures[11] - The company plans to diversify its business network and focus on public sector contracts, particularly in the civil engineering sector, to capture emerging opportunities[11] - The company aims to address ongoing risks while seizing new opportunities in the renovation and civil engineering sectors[11] - The company recognizes the challenges posed by increased competition and labor constraints in the renovation and construction industry[11] - The company expresses gratitude to its board, management team, and employees for their efforts during a challenging year[12] - The company emphasizes its strong market position and established relationships with key clients and suppliers as a foundation for future growth[11] Shareholder Information - The board has proposed a final dividend of HKD 0.04 per share for the year 2025, compared to no dividend in 2024, pending approval at the annual general meeting on September 9, 2025[38] - The annual general meeting is scheduled for September 9, 2025, where the proposed dividend will be subject to shareholder approval[72] - The company has adopted a dividend policy aimed at balancing sufficient capital for business development and rewarding shareholders[166] - The board will consider various factors, including the group's financial performance and capital expenditure needs, when deciding on future dividend payments[168] Corporate Governance - The board consists of one executive director (Dr. Jin Zibo, CEO), two non-executive directors (Mr. Wang Xueyan and Ms. Song Ningning), and three independent non-executive directors (Mr. Yao Daohua, Mr. Song Jiahua, and Mr. Jin Fan) as of the report date[149] - The board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee to oversee specific aspects of the company's affairs[159] - The roles of the chairman and CEO are clearly defined and separated to ensure independence and proper checks and balances within the board[155] - The company has complied with the listing rules regarding the appointment of independent non-executive directors throughout the reporting period[156] - The company has established a remuneration committee to review the remuneration policy and structure for all directors and senior management based on the group's performance and market practices[137] - The company has maintained compliance with the corporate governance code throughout the year[145] Risk Management - The company has identified significant risks related to customer concentration, with a majority of revenue derived from a limited number of clients[76] - The company has experienced risks related to project execution, including potential material or labor shortages and unexpected technical issues[79] - The company’s financial performance may be adversely affected if it cannot maintain estimated costs or pass on any increased costs to customers during contract execution[80] - The board is responsible for maintaining effective risk management and internal control systems to protect the group's assets and shareholder interests[184] Employee and Management Information - The company employs 49 full-time employees as of March 31, 2025, consistent with the number from the previous year[37] - The group maintains a competitive compensation package for employees, including salaries, discretionary bonuses, and other cash benefits, to attract and retain suitable employees[109] - The group has established a comprehensive annual review system to evaluate employee performance, which informs decisions on salary increases, bonuses, and promotions[109] - The remuneration of directors and senior management is determined based on their responsibilities, workload, time commitment, and the group's performance[175] Environmental, Social, and Governance (ESG) - The group is committed to sustainable business operations, focusing on minimizing the environmental impact of construction activities[196] - The sixth Environmental, Social, and Governance (ESG) report was published, covering the period from April 1, 2024, to March 31, 2025[197] - The group has implemented comprehensive policies across various areas, including environmental sustainability and quality control, to ensure compliance with relevant laws and best practices[196] - The board is responsible for the group's ESG strategy and reporting, ensuring alignment with regulatory requirements[185] - The group conducted annual stakeholder engagement activities to identify significant ESG issues, with the results confirmed by management and the board[199] Board Diversity and Training - The company has adopted a board diversity policy to enhance board efficiency by considering various factors such as talent, skills, and gender representation[161] - The board will continue to seek female candidates to strengthen gender diversity and will review the diversity policy annually to ensure its effectiveness[162] - All directors have confirmed attendance at training sessions and seminars to stay updated on corporate governance practices[167] - The nomination committee will regularly review the board's structure and diversity to ensure it meets the company's business needs[164]
荣尊国际控股(01780) - 2025 - 年度财报