Financial Performance - The group recorded total revenue of approximately HKD 344.3 million for the year ended March 31, 2022, an increase of about 42.9% compared to HKD 241.0 million for the previous year[21]. - The increase in revenue was primarily due to the recovery of the construction industry and the resumption of construction projects, such as those in Kai Tak[21]. - The company's revenue increased by approximately 42.9% from about HKD 241.0 million for the year ended March 31, 2021, to about HKD 344.3 million for the year ended March 31, 2022[32]. - Direct costs rose by approximately 44.0%, from about HKD 222.0 million to about HKD 319.5 million during the same period[33]. - Gross profit increased to approximately HKD 24.8 million, with a gross margin of about 7.2%, down from 7.9% the previous year, a decrease of about 0.7 percentage points[34]. - Other income decreased significantly from about HKD 9.1 million to approximately HKD 2.6 million, primarily due to a one-time government subsidy of about HKD 4.8 million received in the previous year[35]. - Administrative expenses decreased by approximately 13.0%, from about HKD 24.6 million to about HKD 21.4 million, mainly due to the absence of bonuses paid to employees during the COVID-19 pandemic[36]. - The company recorded a net profit of approximately HKD 2.2 million for the year ended March 31, 2022, compared to a net loss of about HKD 0.6 million in the previous year[38]. - As of March 31, 2022, the company's total cash and bank balance was approximately HKD 10.1 million, slightly down from HKD 10.7 million the previous year[41]. - The company's total debt was approximately HKD 114.2 million, up from HKD 103.2 million the previous year, resulting in a debt-to-equity ratio of about 106.9%[43]. Human Resources and Operational Efficiency - The total employee cost for the year was approximately HKD 66.2 million, an increase from about HKD 63.2 million in the previous year, with the workforce growing from 119 to 172 full-time employees[52]. - The company will continue to invest in human resources and information systems to improve operational capabilities and efficiency[25]. - The overall percentage of employees receiving training in 2022 was 100%, an increase from 55% in 2021[185]. - The percentage of male employees receiving training was 91%, while female employees accounted for 9%[185]. - Average training hours for male employees were 3.0 hours, while female employees had an average of 2.5 hours[190]. - The employee retention strategy has resulted in a relatively low percentage of new hires and turnover rates[175]. - Total employee turnover rate for 2022 was 61.6%, significantly up from 32.2% in 2021[176]. - The number of work-related injuries reported was 2, with an injury rate of 1.16 per 100 employees[184]. - The company maintained a zero fatal accident rate during the reporting period, consistent with the previous year[181]. - The company has implemented health and safety measures in response to COVID-19, including daily temperature checks and health declarations[180]. - The company has developed a risk assessment plan to manage health and safety risks in daily operations[179]. - The training programs include quality management and environmental management training to meet ISO standards[185]. - The company has established a comprehensive occupational health and safety management system based on OHSAS18001[179]. Corporate Governance - The company is committed to maintaining high standards of corporate governance through independent directors and various committees[60]. - The company has fully complied with the standards set forth in the securities trading code for directors during the reporting period[74]. - The board consists of a majority of independent non-executive directors, exceeding the requirement of at least one-third as stipulated by the listing rules[80]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, each with clear written terms of reference[86]. - The company complies with the corporate governance code, ensuring the separation of roles between the Chairman and the CEO to avoid power concentration[84]. - The company provided ongoing professional development training for all directors to enhance their knowledge and skills[85]. - The Audit Committee confirmed that the consolidated financial statements for the year ending March 31, 2022, comply with applicable accounting standards and listing rules[94]. - The company has a structured approach to corporate governance, which is essential for maintaining stakeholder trust and long-term value creation[73]. - The board's composition includes members with diverse experiences, ensuring a balanced approach to the company's operational strategies[80]. - The company has purchased liability insurance for its directors and senior management to cover potential legal liabilities arising from their duties[76]. - The board is responsible for monitoring the company's financial performance and internal controls, ensuring effective risk management systems are in place[75]. - The company ensures that all significant issues at the shareholders' meeting are presented as individual resolutions for consideration and voting[117]. - Shareholders can request to convene a special general meeting if they hold at least 10% of the paid-up capital[117]. - The company will disclose the progress of the board diversity policy and measurable targets in the annual corporate governance report[107]. - The nomination committee will conduct a review of the nomination policy to ensure its effectiveness and propose necessary amendments to the board[106]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report outlines the company's measures and performance in sustainable development[132]. - The company has identified key environmental, social, and governance issues and key performance indicators relevant to its operations[135]. - A dedicated team has been established to manage ESG matters and monitor progress towards climate change goals[136]. - The company reported nitrogen oxide emissions of 1.927 tons in 2022, an increase from 1.532 tons in 2021, attributed to a rise in vehicle usage due to an increase in employee numbers[149]. - The company aims to maintain low emission levels and has implemented measures such as avoiding vehicle use during peak traffic hours and encouraging public transport[149]. - The company is committed to reducing greenhouse gas emissions through various environmental policies and measures, including promoting energy-saving practices in the office[142]. - The company has identified extreme weather events as a significant risk that could impact operations, prompting the development of emergency response plans[143]. - The company engages with stakeholders regularly to gather feedback and improve its environmental, social, and governance performance[141]. - The company has adopted effective noise reduction equipment at construction sites to minimize environmental noise disturbances[145]. - The company has obtained necessary permits for wastewater management in compliance with the Water Pollution Control Ordinance[145]. - The company focuses on enhancing the resilience of its business and advocating for collective action to address climate change[142]. - In 2022, the total greenhouse gas emissions amounted to 265.03 tons, an increase from 236.00 tons in 2021, representing an increase of approximately 12.3%[156]. - The total amount of inert construction and demolition waste generated was 18,895 tons in 2022, up from 14,747 tons in 2021, reflecting an increase of about 28.9%[158]. - The company has established an environmental management system and obtained ISO14001 and ISO9001 certifications to support sustainable development[168]. - The company aims to use the current year's density of greenhouse gas emissions as a benchmark to maintain emission levels over the next five years[156]. - The company emphasizes the importance of environmental issues and the use of eco-friendly materials in its supply chain management[195]. Risk Management - Significant risks include reliance on non-recurring contracts and a limited number of clients, which could adversely affect operations and financial performance[26]. - The company maintains an effective internal control and risk management system to safeguard shareholder investments and group assets[119]. - Risk management procedures include identifying major risks, assessing their potential impact, and planning effective mitigation activities[121]. - The board reviews the effectiveness of the risk management and internal control systems at least annually[122]. - An independent consultant has reviewed the internal control system, including financial, operational, and compliance measures, and found it effective and sufficient[122]. - The company has established procedures to address any non-compliance issues, including immediate notification of relevant personnel and investigation of incidents[146]. - The company has not been aware of any significant violations of environmental laws and regulations during the reporting period[147].
凌锐控股(00784) - 2022 - 年度财报