Financial Performance - The Group's revenue decreased by approximately HK$38.4 million or approximately 10.9%, from approximately HK$352.9 million for the year ended 30 June 2024 to approximately HK$314.5 million for the year ended 30 June 2025[11]. - The net loss for the year amounted to approximately HK$0.5 million, compared to a net profit of approximately HK$35.8 million for the previous year[11]. - The Group's total revenue for the year ended 30 June 2025 was approximately HK$314.4 million, a decrease of about 10.8% from HK$352.7 million in the previous year[44]. - Gross profit decreased significantly by approximately 59.0% to HK$26.1 million for the year, down from HK$63.6 million in the previous year[47]. - The gross profit margin fell from approximately 18.0% in the previous year to approximately 8.3% for the year, primarily due to increased subcontractor fees and lower margins on new projects[48]. - Other income decreased by approximately 29.2% to HK$1.7 million, down from HK$2.4 million in the previous year, mainly due to reduced interest income[49]. - Administrative expenses increased by approximately 7.2% to HK$22.3 million, up from HK$20.8 million in the previous year, driven by higher staff and professional costs[55]. - Impairment losses and write-offs rose from approximately HK$2.1 million to HK$5.5 million, attributed to aging trade receivables and a significant write-off of HK$2.0 million due to a customer winding up[56]. - The Group reported a loss before taxation of approximately HK$0.1 million, primarily due to decreased gross profit and increased expenses[57]. - The income tax expense decreased significantly from approximately HK$7.2 million to HK$0.4 million, reflecting the shift from profit to loss before taxation[58]. Market Conditions - The average annual capital works expenditure in the construction industry is expected to increase from HK$90 billion to approximately HK$120 billion during the period from 2025-26 to 2029-30[12]. - The Group is facing increasing operational costs, particularly in direct labor and subcontracting charges, alongside intensified price competition[12]. - Revenue from public sector projects declined due to the completion of several large-scale projects, including a passenger terminal at Hong Kong airport and a sports park at Kai Tak[38]. - Revenue from private sector projects increased from approximately HK$54.7 million to approximately HK$61.4 million, representing an increase of 12.1%[42]. - The Group is facing increased competition in the market, leading to a gradual decline in profit margins[31]. - The economic outlook for the Hong Kong construction industry has become uncertain, with fewer projects being launched and increased price sensitivity among customers[31]. Strategic Focus - The Group will continue to prioritize specialized passive fire protection services while exploring prefabrication opportunities in this field[12]. - The Group aims to strengthen its competitive edge in the construction industry by closely monitoring project costs to enhance shareholder returns[12]. - The Group is actively seeking new business elements to broaden its revenue sources and drive innovative business segments[36]. - The Group provides passive fire protection information services to address issues related to the use of inappropriate materials during project initiation[33]. Financial Position - As of 30 June 2025, the Group is in a steady financial position with no outstanding debt[13]. - The total original contract sum of the Group's outstanding contracts as of June 30, 2025, amounted to approximately HK$687.0 million, compared to HK$670.7 million in FY2024[30]. - The current ratio improved from approximately 12.5 times to 15.0 times, mainly due to a decrease in current liabilities[68]. - As of June 30, 2025, the Group had total bank balances and cash of approximately HK$59.4 million, down from approximately HK$158.0 million as of June 30, 2024[78]. - The Group's gearing ratio was approximately 0.6% as of June 30, 2025, compared to 1.0% as of June 30, 2024[79]. - The net proceeds from the listing on May 9, 2023, amounted to approximately HK$89.1 million, with HK$3.8 million utilized by June 30, 2025[88]. - The Group maintains sufficient retained earnings to support its capital management objectives, with no material changes in capital structure during the year[81]. Corporate Governance - The company is committed to achieving high standards of corporate governance and has complied with the Corporate Governance Code for the year[107][108]. - The Board consists of five Directors, including three executive Directors and three independent non-executive Directors[112]. - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, to oversee specific aspects of the company's affairs[126]. - The Company has adopted a Board Diversity Policy on April 12, 2023, to enhance the effectiveness of the Board through diversity in talent, skill, and experience[136]. - The Nomination Committee will review the Board Diversity Policy annually to ensure its continued effectiveness[144]. - The Board recognizes the importance of gender diversity and aims to continue identifying female candidates for Board positions[142]. - The Company has three independent non-executive Directors, representing over half of the Board, ensuring a balance of power and authority[135]. Risk Management - The Board is responsible for maintaining effective risk management and internal control systems to safeguard the Group's assets and investments[187]. - The Group engaged BT Corporate Governance Limited as an independent consultant to review the effectiveness of its risk management and internal control system for the year ended June 30, 2025[188]. - The consultant conducted an independent review under the COSO 2013 framework, concluding that no significant areas of concern affecting financial, operational, compliance control, and risk management were identified[191]. - The Board conducted a review of the effectiveness of risk management and internal control systems through the Audit Committee's efforts[187]. Employee and Director Matters - The company employed a total of 62 full-time employees, an increase from 57 full-time employees as of June 30, 2024[99]. - The total staff cost incurred by the company for the year was approximately HK$21.6 million, compared to approximately HK$21.7 million for the previous year, indicating a slight decrease[99]. - The Board has recommended a final dividend of HK$0.05 per share for the year, down from HK$0.172 per share in the previous year[101]. - There was no change in Directors for the year ended June 30, 2025, except for the appointment of Mr. Wang Jun as an executive Director effective August 4, 2025[100][102]. - The company did not declare an interim dividend for the six months ended December 31, 2024[101]. - The Board will consider factors such as operating results, retained earnings, profitability, and liquidity when proposing dividends[155].
怡俊集团控股(02442) - 2025 - 年度财报