Financial Performance - The consolidated revenue for the fiscal year ending March 31, 2023, was HKD 6,686,000,000, remaining stable compared to HKD 6,733,000,000 in the previous year[6]. - The consolidated gross profit decreased to HKD 552,000,000 from HKD 659,000,000, primarily due to the absence of property sales profits from the previous year[6]. - Operating expenses decreased by 15% from HKD 545,000,000 to HKD 461,000,000, attributed to the lack of residential property sales and reduced logistics costs[7]. - The consolidated profit before tax was HKD 68,000,000, down from HKD 86,000,000 in the previous year, mainly due to the previous year's property sales[7]. - The total contracts on hand as of March 31, 2023, amounted to HKD 22,559,000,000, compared to HKD 21,427,000,000 in the previous year[7]. - New contracts obtained during the year totaled HKD 6,517,000,000, a decrease from HKD 9,321,000,000 in the previous year[7]. - The company proposed a final dividend of HKD 0.025 per share, maintaining the same level as the previous year, resulting in a total distribution of HKD 0.05 per share for the year[8]. - The group reported a cash and bank balance of HKD 743 million as of March 31, 2023, down from HKD 1,045 million in 2022, while total borrowings increased to HKD 1.367 billion[32]. - The current ratio as of March 31, 2023, was 1.2, indicating a healthy liquidity position compared to 1.1 in 2022[32]. - The total proposed final dividend for the year ended March 31, 2023, is HKD 0.025 per share, amounting to HKD 10,951,000, unchanged from the previous year[77]. Business Segments and Operations - The building construction and renovation segment reported a revenue increase of 11% to HKD 4,442,000,000, driven by an increase in new contracts[10]. - The total new contracts for the building construction segment were HKD 3,890,000,000, down from HKD 7,288,000,000 in the previous year[10]. - Total revenue increased by 15% year-on-year to HKD 2,616,000,000, with the mechanical, electrical, and plumbing division's profit rising 41% to HKD 66,000,000[14]. - New orders in the mechanical, electrical, and plumbing division reached HKD 2,876,000,000, maintaining a high level of order intake[14]. - The company recorded a loss of HKD 61,000,000 in the building materials supply division due to sales dropping by one-third to HKD 373,000,000[17]. - The company secured new contracts worth HKD 904,000,000, increasing the total contract amount to HKD 1,931,000,000[20]. - The company is focusing on fulfilling existing domestic supply contracts rather than seeking new business due to a 9.5% decline in residential investment in mainland China[20]. - The company has ongoing contracts in various sectors, including public housing development and maintenance, with specific projects extending into 2024 and beyond[39][41]. Innovation and Technology - The company has developed a new MiC design and method to alleviate logistics issues and enhance productivity, which includes the BEANiE platform for managing the entire construction lifecycle[11]. - The company has completed over 4,000 MiC units and aims to exceed 6,000 units upon project completion[12]. - The successful application of MiMEP and various digital technologies has reduced project completion time to 38 days, half of the traditional method's 90 days[16]. - The company is expanding its MiC product range to include innovative and sustainable solutions tailored to client needs[12]. - The company is focusing on green building technologies, Building Information Modeling (BIM), and production automation[50]. - The company has been developing various types of construction robots and AI applications since 2017[50]. - The advanced technology of BEANiE has received multiple industry awards in 2022, including the "BIM Consultant Award - Silver" from the Hong Kong BIM Society[200]. - BEANiE 6.0 utilizes City Information Modeling (CIM) and integrates 5G, sensors, and IoT technology for data transmission to cloud servers[200]. Market and Economic Conditions - Hong Kong's tourism industry has recovered to 49% of pre-pandemic visitor levels, with a target of 25.8 million visitors by the end of the year[22]. - The group expects to complete renovations and reopen a hotel in early next year, showcasing its industry-leading capabilities in Modular Integrated Construction (MiC)[22]. - The group plans to acquire a retail property in Tai Kok Tsui, expected to be confirmed by the end of June 2023, as retail sentiment in Hong Kong improves[22]. - Hong Kong's GDP grew by 2.7% year-on-year in Q1 2023, recovering from a contraction of 4.1% in the previous quarter[25]. - The unemployment rate in Hong Kong has decreased to 3.1%, marking the twelfth consecutive month of decline[25]. Corporate Governance and Social Responsibility - The company emphasizes the importance of corporate governance for sustainable success and shareholder value[103]. - The board believes that a diverse board enhances decision-making and performance quality[110]. - The company has established a risk management framework based on the "three lines of defense" model, which includes operational management, risk management functions, and internal audit[143]. - The company has implemented a robust anti-corruption management system, including training for new employees on integrity[149]. - The company has a corporate social responsibility policy that addresses ethical, environmental, safety, employee, and community issues[168]. - The company is committed to promoting gender equality and will regularly review its gender diversity and set gender ratio targets as appropriate[119]. - The company has established a whistleblowing policy to encourage reporting of misconduct in a confidential manner[150]. Employee and Leadership Development - The group invested significantly in employee training and development, aiming to enhance its attractiveness as an employer and ensure long-term success[34]. - The company aims to maintain competitive compensation packages and performance-based rewards for employees to drive productivity and retention[34]. - The total number of employees as of March 31, 2023, is approximately 3,600, with 78.5% male and 21.5% female[119]. - The management team has extensive experience, with key members holding over 30 years in financial management and engineering sectors[67][69]. - All directors participated in ongoing professional development, with each attending three relevant training sessions during the year[135]. Environmental, Social, and Governance (ESG) Initiatives - Approximately 99.98% of the company's business operations are covered under the environmental, social, and governance (ESG) performance report, which includes around 90 subsidiaries[167]. - The company has committed to reducing carbon emissions and implementing carbon audits as part of its sustainability initiatives[177]. - The board of directors is responsible for overseeing the overall ESG strategy and assessing related performance annually[171]. - The company aims to set measurable environmental targets to reduce greenhouse gas emissions and energy consumption by 2050[182]. - The company is actively participating in the "ESG Charter" initiative, committing to selected ESG areas for implementation[172]. Audit and Compliance - The independent auditor, PwC, has audited the consolidated financial statements and is willing to be reappointed[101]. - The total fees paid to the independent auditor, PricewaterhouseCoopers, for the year ended March 31, 2023, amounted to HKD 5,849,000, compared to HKD 5,092,000 for the previous year[137]. - The Audit Committee held two meetings during the year ended March 31, 2023, to review performance and discuss accounting matters with senior management and independent auditors[122]. - The company has complied with the listing rules, except for the separation of the roles of chairman and CEO, which are held by the same individual[156].
有利集团(00406) - 2023 - 年度财报