Financial Performance - Total revenue for the year ended March 31, 2022, was approximately HKD 177.7 million, an increase of 76.8% compared to HKD 100.5 million in the fiscal year 2021[7] - The construction business generated revenue of approximately HKD 173.9 million, up from HKD 94.3 million in the previous year, while the financing business recorded revenue of approximately HKD 3.8 million, down from HKD 6.2 million[7] - Gross profit for the year was approximately HKD 21.6 million, an increase of about 5.4% from HKD 20.5 million in the previous year, with a gross margin of 12.2% compared to 20.4% in the prior year[9] - The construction segment's gross margin decreased to approximately 10.3% from 15.1% due to higher material and logistics costs[9] - The group recorded a total contract revenue of HKD 173,865,000 for the year ended March 31, 2022[155] Cash and Assets - As of March 31, 2022, the group's cash and bank balances were approximately HKD 62.4 million, down from HKD 90.2 million in the previous year, with a net asset value of approximately HKD 297.8 million[11] - As of March 31, 2022, the total amount of assets pledged was HKD 11.6 million, with bank deposits of approximately HKD 28.4 million pledged for financing[15] - The company’s trade receivables and contract assets amounted to approximately HKD 14,413,000 and HKD 36,207,000, respectively, with impairment losses of about HKD 20,118,000 and HKD 4,827,000 deducted[181] Debt and Liabilities - The capital debt ratio as of March 31, 2022, was approximately 0.05, compared to 0.06 in the previous year, with total bank borrowings of approximately HKD 16 million[11] - As of March 31, 2022, there were no significant contingent liabilities or commitments[74] Dividends - The company does not recommend any dividends for the years ended March 31, 2022, and March 31, 2021[9] - The company confirmed that as of March 31, 2022, it had no distributable reserves available for distribution to equity holders, consistent with the previous year[45] Business Strategy and Development - The group is actively seeking investment and project opportunities to expand its business in Hong Kong and Macau, particularly in the context of the Greater Bay Area development[8] - The group is focused on investment holding and has plans for future business development, including addressing major risks and uncertainties[40] Employee and Governance - The group had 15 employees as of March 31, 2022, down from 18 in the previous year[16] - The group has established a mandatory provident fund scheme for all eligible employees in Hong Kong, with assets controlled by trustees[17] - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced and independent governance structure[84] - The company has adhered to the corporate governance code and maintained transparency and risk management practices[82] Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2022[143] - The audit process included evaluating key internal controls related to contract revenue recognition for construction and engineering services[150] - The company is committed to ensuring compliance with the Hong Kong Financial Reporting Standards[144] Shareholder Relations - The company aims to enhance transparency and promote investor relations, emphasizing the importance of shareholder feedback[139] - Shareholders can propose resolutions at general meetings with a minimum of 100 shareholders or 5% of total voting rights[133] Impairment and Credit Losses - During the year, the company recognized an impairment provision of approximately HKD 10,088,000 for trade receivables and HKD 2,113,000 for contract assets[181] - The company applied a simplified approach for assessing impairment, conducting individual assessments for customers with credit impairment and using a provision matrix for collective assessments[181] - The key assumptions for estimating expected credit losses included the probability of default and loss given default, which involved significant management judgment[191]
志道国际(01220) - 2022 - 年度财报