Financial Performance - For the fiscal year ending March 31, 2023, the company reported total revenue of approximately HKD 244.3 million, a 37.5% increase from HKD 177.7 million in the previous fiscal year, primarily driven by the construction business in Macau [6]. - The total gross profit for the year was approximately HKD 25.3 million, representing a growth of about 17.1% compared to HKD 21.6 million in the previous year, with a gross profit margin of approximately 10.4% [7]. - The company reported a loss before tax of HKD 14,970,000, an improvement from a loss of HKD 31,975,000 in the previous year [143]. - The net loss for the year was HKD 12,903,000, compared to a net loss of HKD 31,059,000 in the prior year, indicating a significant reduction in losses [143]. - The total comprehensive loss for the year was HKD 15,270,000, a decrease from HKD 34,943,000 in the previous year [143]. - The company reported a loss attributable to owners of HKD 24,910,000 for the year ended March 31, 2023, compared to a loss of HKD 12,747,000 in the previous year, representing a 95.5% increase in losses [145]. - Total comprehensive loss attributable to owners was HKD 28,794,000 for the year, up from HKD 15,114,000, indicating an increase of 90.5% [149]. Cash Flow and Financial Position - As of March 31, 2023, the company's cash and bank balances were approximately HKD 20.7 million, down from HKD 62.4 million in the previous year, while net assets were approximately HKD 282.5 million [11]. - The company's net cash flow from operating activities was negative HKD 45,945,000 for the year, worsening from negative HKD 23,354,000 in the previous year [151]. - The company reported a decrease in cash and cash equivalents of HKD 41,685,000 for the year, compared to a decrease of HKD 28,085,000 in the prior year [153]. - The company's equity attributable to owners decreased to HKD 293,540,000 in 2023 from HKD 308,654,000 in 2022, a decrease of 4.9% [147]. - The company's total cash and cash equivalents at year-end were HKD 19,004,000, a decrease from HKD 60,656,000 at the beginning of the year [153]. Business Operations - The main business activities include sales of aluminum products, supplying aluminum products for construction projects, and providing financing loans [30]. - The company anticipates that the reopening of the Chinese market post-pandemic will boost economic activity in Hong Kong and Macau, enhancing real estate development and construction project intentions [9]. - The company is actively seeking new project tenders and potential acquisitions or investments to mitigate risks associated with economic uncertainties [6]. - The group reported contract revenue of HKD 240,520,000 related to construction and engineering services for the year ended March 31, 2023 [120]. Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange, maintaining compliance throughout the fiscal year ending March 31, 2023 [66]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced composition for effective leadership [68]. - The company has established three permanent board committees: Audit Committee, Remuneration Committee, and Nomination Committee, with their roles defined in accordance with governance standards [77]. - The audit committee, established in January 2012, oversees the appointment and remuneration of external auditors and reviews the group's financial reporting [90]. Employee and Stakeholder Relations - The company has maintained a workforce of 15 employees, with compensation policies regularly reviewed based on market terms and individual performance [16]. - The board expressed gratitude to employees and shareholders for their contributions and support during the year [21]. - The company emphasizes the importance of employee retention through competitive compensation, discretionary bonuses, training, and occupational health and safety measures [61]. - The company encourages shareholder participation in annual general meetings, with voting results published on the company's and stock exchange's websites [107]. Risk Management and Financial Controls - The company is focused on enhancing internal controls and financial reporting processes to ensure compliance and accuracy in financial statements [136]. - The credit control team assesses potential borrowers' creditworthiness, including their credit history and the value of collateral, to determine loan amounts and terms [82]. - The company has purchased directors and officers liability insurance to mitigate risks faced by its directors and senior management [60]. - The company has implemented a stock option plan to reward eligible participants contributing to its operational success [61]. Environmental and Social Responsibility - The group is committed to reducing energy and resource usage to minimize environmental impact, with further details to be provided in the environmental, social, and governance report [19]. - The group has complied with various legal and regulatory requirements, ensuring employee welfare and data privacy [20].
志道国际(01220) - 2023 - 年度财报