Financial Performance - The total revenue for the fiscal year ended March 31, 2022, was approximately HKD 864.5 million, a slight decrease of 6% compared to the previous year[5]. - The net profit attributable to the owners of the company for the year was HKD 31.3 million, down 28.7% from the previous year, with basic earnings per share of HKD 0.89[5]. - Revenue from the concrete business accounted for 89.1% of total revenue, with a decrease of 8.2% to approximately HKD 769.8 million from HKD 838.5 million in the previous year[10]. - Revenue from the home consumables business increased by 27.2% to approximately HKD 60.6 million, driven by increased sales in the UK[14]. - The lending business revenue slightly increased by 2.7% to approximately HKD 34.1 million[14]. - The gross profit for the continuing operations decreased by approximately HKD 3,500,000 or 1.8% year-on-year to about HKD 194,500,000, primarily due to a decline in sales volume in the concrete business[15]. - The total comprehensive income attributable to owners of the company was approximately HKD 46,800,000, compared to about HKD 50,200,000 in the previous year[29]. - The profit before tax for continuing operations rose to approximately HKD 32,100,000 from about HKD 19,900,000 in the previous year[27]. Business Strategy and Operations - The company aims to expand its concrete business through potential acquisitions of small to medium-sized concrete manufacturers[6]. - The company is exploring the feasibility of vertical expansion by acquiring raw material businesses related to concrete, such as sand and gravel[6]. - The focus on Hainan Province is expected to continue, as the government has policies supporting its development as a significant free trade port by 2050[6]. - The concrete business demonstrated resilience amid global changes and market fluctuations, with expectations of benefiting from stable real estate policies in China[5]. - The concrete business continued to generate strong and stable revenue despite economic downturns, with expectations for steady growth in demand due to government support for infrastructure development[56]. - The group is exploring the feasibility of acquiring or investing in sand and gravel supply businesses to ensure stable raw material supply for the concrete segment[56]. - The home consumables business showed slight growth compared to the previous year, although rising prices and supply chain challenges may hinder recovery in the UK economy[57]. - The lending business remains a stable source of income, with the group positioned as one of the third-tier lenders in Hong Kong, maintaining rigorous risk assessment procedures[58]. Corporate Governance - The company is committed to high standards of corporate governance to enhance shareholder value and protect the interests of stakeholders[72]. - The company has adopted good corporate governance principles emphasizing effective internal controls and transparency[72]. - The company has complied with all provisions of the corporate governance code except for the separation of roles between the chairman and the CEO[73]. - The board believes that the dual role of the chairman and CEO held by Mr. Huang is suitable and beneficial for the company's interests, ensuring policy continuity and operational stability[74]. - The board is responsible for maintaining complete accounting records to monitor and accurately disclose the group's financial status[78]. - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with the standards set out in the listing rules[75]. - The board consists of three executive directors and three independent non-executive directors, meeting the listing rules' requirements for independent board composition[81]. - The company has appropriate insurance arrangements for its directors and executives against legal actions, with coverage reviewed annually[82]. - The board is committed to continuously reviewing and improving corporate governance practices to ensure prudent regulation of business activities[74]. - The directors are responsible for preparing the consolidated financial statements, ensuring they present a true and fair view of the group's financial position[86]. Risk Management and Compliance - The group has identified several key risks and uncertainties that may impact its financial condition and operational performance, including business and financial risks related to major customer relationships[137]. - The group has established compliance procedures to ensure adherence to listing rules and other applicable laws, with a focus on significant impacts on its operations[135]. - The board is responsible for the effectiveness of the internal control and risk management systems, which are reviewed annually[97]. - The company has established policies for handling insider information, ensuring compliance with regulations[97]. Employee and Training Development - The group employed a total of 221 employees as of March 31, 2022, down from 267 employees the previous year, with employee costs approximately HKD 52.6 million, unchanged from the previous year[51]. - The group has developed comprehensive training programs and diverse career development paths for employees[131]. - The company emphasizes ongoing professional training for directors, ensuring they are updated on business operations and regulatory changes[87]. - The company encourages directors to participate in relevant training courses, with costs covered by the company[87]. Shareholder and Financial Management - The group encourages shareholder participation in annual general meetings to discuss business developments and performance[122]. - The board will continue to review the dividend policy, balancing sufficient funding for business growth and shareholder returns[110]. - The board does not recommend the distribution of a final dividend for the year, compared to a dividend of HK$0.03 per ordinary share in the previous year[128]. - The group completed a placement of 699 million ordinary shares at a price of HKD 0.105 per share on April 29, 2022, raising approximately HKD 71.2 million for business growth and expansion[52]. Audit and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2022, in accordance with Hong Kong Financial Reporting Standards[190]. - The audit committee conducted three meetings to review the annual report and interim report, ensuring the integrity of financial reporting[95]. - The audit committee reviewed the management accounting principles and practices adopted by the group, discussing audit, internal control, and financial reporting matters[185]. - The external auditor's fees for statutory audit and non-audit services were approximately HKD 1,530,000 and HKD 15,000 respectively, compared to HKD 1,450,000 and HKD 15,000 for the previous year[96]. - The group’s financial statements include key audit matters that were deemed most important during the audit process[192].
华盛国际控股(01323) - 2022 - 年度财报