Financial Performance - Total revenue for the fiscal year ended March 31, 2023, was approximately HKD 78.4 million, an increase of HKD 0.1 million or 0.1% from approximately HKD 78.3 million for the fiscal year ended March 31, 2022[6]. - The company reported a loss of approximately HKD 24.4 million for the fiscal year ended March 31, 2023, compared to a profit of approximately HKD 0.6 million for the previous year, primarily due to decreased gross profit, increased administrative expenses, and higher impairment losses[6]. - Revenue slightly increased by approximately 0.1% from HKD 78.3 million for the year ended March 31, 2022, to HKD 78.4 million for the year ended March 31, 2023[15]. - Gross profit decreased by approximately 54.8% from HKD 23.0 million to HKD 10.4 million, with the overall gross margin dropping from 29.4% to 13.3%[18]. - Other income increased by approximately 225.0% from HKD 0.4 million to HKD 1.3 million, mainly due to subsidies received under the Employment Support Scheme[19]. - Trade receivables and contract assets impairment losses increased to approximately HKD 12.5 million from HKD 2.4 million, attributed to the economic impact of COVID-19[20]. - Administrative expenses rose by approximately 31.7% from HKD 18.0 million to HKD 23.7 million, mainly due to increased legal and professional fees[21]. - Cash and cash equivalents as of March 31, 2023, were approximately HKD 48.3 million, down from HKD 67.5 million in 2022[26]. - The current ratio as of March 31, 2023, was approximately 10.7 times, compared to 16.2 times in 2022[27]. - The company did not recommend any final dividend for the year ended March 31, 2023, consistent with the previous year[25]. Market Outlook - The company anticipates more bidding opportunities in the second half of the year, with ongoing projects including a HKD 31 million contract for the Hong Kong City University and two additional contracts exceeding HKD 10 million each[8]. - The construction market in Hong Kong is expected to become more active as the government relaxes COVID-19 measures, which may stimulate economic recovery[8]. - The overall economic recovery in Hong Kong is anticipated to provide opportunities for revenue expansion and long-term growth[8]. COVID-19 Impact - The gross profit margin decreased during the fiscal year due to increased direct costs resulting from COVID-19's impact on labor and supply chains[11]. - The company has experienced delays in project progress due to COVID-19, affecting revenue generation[7]. - The company will continue to monitor the COVID-19 situation and take appropriate measures to mitigate its adverse effects on financial performance[13]. - Direct costs rose by approximately 23.0% from HKD 55.3 million to HKD 68.0 million, primarily due to supply chain pressures from the COVID-19 pandemic[17]. Corporate Governance - The board believes that the dual role of the chairman and CEO is in the best interest of the group for effective management and business development[49]. - The group has adhered to the trading standards for directors as per the listing rules, with no non-compliance incidents reported for the year ending March 31, 2023[50]. - The board consists of five directors, including two executive directors and three independent non-executive directors as of March 31, 2023[52]. - The company held four board meetings during the year and one annual general meeting on August 26, 2022[63]. - All directors attended 100% of the board meetings and the annual general meeting[64]. - The company plans to have at least one female director by December 31, 2023, depending on suitable candidates[56]. - The board has adopted a diversity policy to ensure a balanced composition in terms of skills, experience, and background[56]. - The company has purchased appropriate insurance for its directors and senior management against potential legal actions[68]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory policies[53]. - The company emphasizes the importance of continuous professional development for its directors[67]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report outlines the company's commitment to sustainability and its core business in fire safety systems design, supply, and installation[110]. - The ESG report covers activities, challenges, and measures taken during the reporting period ending March 31, 2023[112]. - The board of directors is responsible for overseeing ESG issues, including management policies and risk assessments[116]. - An ESG committee has been established to collect data for the ESG report and assess the company's performance in various ESG-related areas[117]. - The company aims to integrate ESG principles into its risk management system to align with societal trends towards sustainability[111]. - The ESG report includes quantitative data with supplementary notes explaining the standards and methods used for calculations[118]. - The reporting methodology for the ESG report remains consistent with the previous year, with clarifications provided for any changes in data disclosure and calculation methods[118]. - The company recognizes the importance of stakeholder engagement and has conducted a materiality assessment to identify key issues for the ESG report[118]. - The group emphasizes stakeholder engagement and maintains close communication with key stakeholders, including the board, investors, customers, employees, suppliers, and regulatory authorities[120]. - In 2023, the group identified 15 key issues for stakeholders, including occupational health and safety, data privacy protection, and customer satisfaction[123]. Employee Relations - The group recognizes employees as valuable assets and offers competitive compensation based on market standards and individual performance[40]. - The group has maintained good relationships with employees, with no significant issues or labor disputes affecting operations as of March 31, 2023[40]. - The company adheres to local laws and regulations regarding employment and labor practices, ensuring the protection of employee rights[169]. - The company offers competitive compensation linked to employee performance and experience, including benefits such as medical plans and discretionary bonuses[170]. - The company promotes a culture of open recruitment and fair hiring practices, ensuring a diverse and capable workforce[170]. - As of March 31, 2023, the total number of employees in the company is 43, with a gender breakdown of 34 males (79%) and 9 females (21%)[176]. - The employee turnover rate for the reporting period is 35%, with a breakdown of 29% for males and 56% for females[176]. - The injury rate during the reporting period is 2.3%, with one recorded injury resulting in 14 lost workdays[179]. - The company achieved a 100% training rate for employees during the reporting period, totaling 148 training hours[188]. - The average training hours for male employees is 2.69 hours, while for female employees it is 6.28 hours[188]. Environmental Management - The group has implemented an environmental management system in accordance with ISO 14001:2004 to ensure compliance with environmental regulations[127]. - The group reported emissions of 33.66 kg of nitrogen oxides (NOx), 0.07 kg of sulfur oxides (SOx), and 3.21 kg of particulate matter (PM) for the fiscal year 2023[130]. - The group aims to reduce greenhouse gas emissions primarily from office electricity consumption and vehicle fuel usage[134]. - The group has established a "Green and Sustainable Program" to minimize adverse environmental impacts during operations[127]. - The group is committed to continuous improvement in environmental performance and compliance with relevant environmental laws and regulations[129]. - The group encourages the use of electronic meetings to reduce physical gatherings and promote sustainability[131]. - The group has developed a waste disposal plan to manage environmental procedures effectively[128]. - Direct greenhouse gas emissions (Scope 1) decreased from 17.12 tons CO2 equivalent in 2022 to 11.52 tons CO2 equivalent in 2023, a reduction of approximately 32.5%[135]. - Indirect greenhouse gas emissions (Scope 2) from electricity consumption decreased from 32.40 tons CO2 equivalent in 2022 to 27.40 tons CO2 equivalent in 2023, a reduction of approximately 15.5%[135]. - Total greenhouse gas emissions decreased from 58.28 tons CO2 equivalent in 2022 to 56.20 tons CO2 equivalent in 2023, a reduction of approximately 3.6%[135]. - The total greenhouse gas emissions density per employee decreased from 1.39 tons CO2 equivalent in 2022 to 1.31 tons CO2 equivalent in 2023, a reduction of approximately 5.8%[135]. - Total energy consumption decreased from approximately 152,791 kWh in 2022 to approximately 113,818 kWh in 2023, a reduction of 25.5%[152]. - The density of total energy consumption per employee decreased from 3,638 kWh in 2022 to 2,647 kWh in 2023, a reduction of approximately 27.2%[152]. - Paper disposal increased from 1.83 tons in 2022 to 3.60 tons in 2023, an increase of approximately 96.2%[144]. - The paper disposal density per employee increased from 0.044 tons in 2022 to 0.084 tons in 2023, an increase of approximately 90.9%[144]. - The company aims to reduce total greenhouse gas emissions density by 2025, using the reporting period as a baseline[135]. - The company has implemented measures to optimize operational procedures and reduce fuel consumption, contributing to lower greenhouse gas emissions[137]. - The company has implemented various energy-saving measures to improve energy efficiency, including monitoring energy usage monthly and using energy-efficient office equipment[157]. - The company encourages employees to turn off idle equipment and lights when not in use, promoting a culture of energy conservation[157]. - The company has established a series of procedures to assess environmental risks in accordance with ISO 14001 standards, focusing on minimizing negative environmental impacts[161]. - The company recognizes the threats posed by climate change and has implemented risk management measures to identify and mitigate climate-related risks[165]. - The company has set up contingency plans to minimize potential risks and damages from extreme weather events, ensuring business resilience[166]. Supplier and Quality Management - The company has established strict procedures for selecting suppliers and subcontractors to ensure compliance with quality, service, environmental, and safety standards[193]. - The company has a total of 244 suppliers located in Hong Kong, with no suppliers in mainland China or other regions[199]. - The company has implemented a quality assurance policy aligned with ISO 9001, ISO 45001, and ISO 14001 standards to foster a culture of sustainable development and continuous improvement[200]. - The company prioritizes local suppliers and environmentally friendly products to reduce carbon footprint and support local economic development[198]. - The company conducts annual evaluations of suppliers and subcontractors based on overall project performance and compliance[193]. - The company has a policy to ensure fair and open bidding processes for suppliers and subcontractors, preventing any bias or discrimination[194]. - The company emphasizes the importance of customer feedback for improving and optimizing performance[199]. - The company monitors suppliers to ensure compliance with health, safety, and labor laws[198].
莹岚集团(01162) - 2023 - 年度财报