Financial Performance - The company's revenue for the fiscal year ending March 31, 2023, was approximately HKD 660,400,000, a decrease of about 17.9% compared to the previous year[9]. - The concrete business generated revenue of approximately HKD 633,600,000, down 17.7% year-on-year, primarily due to a temporary suspension of production caused by COVID-19 in Haikou[9]. - The net loss attributable to shareholders for the year was approximately HKD 54,800,000, compared to a profit of approximately HKD 31,300,000 in the previous year[15]. - The total revenue for the year was approximately HKD 660.4 million, down from HKD 803.9 million in the previous year[18]. - The company recorded a loss before tax of approximately HKD 47.3 million, compared to a profit of about HKD 26.7 million in the previous year, primarily due to increased impairment losses[31]. - The total comprehensive loss attributable to the company's owners for the year was approximately HKD 62.4 million, compared to a comprehensive income of approximately HKD 46.8 million in the previous year[36]. - The company recorded net other losses of approximately HKD 93.8 million, significantly higher than the previous year's losses of about HKD 3.7 million[25]. - The average total loan portfolio decreased from approximately HKD 248.9 million to about HKD 230.5 million, leading to a revenue drop in the lending business[20]. - The company achieved a gross profit margin of 28.8% for continuing operations, up from 22.6% in the previous year[21]. - The gross profit for the concrete business increased from approximately HKD 147.5 million to about HKD 163.6 million, with a gross margin improvement from 19.2% to 25.8%[21][22]. Business Strategy and Future Outlook - The company aims to diversify its business and mitigate financial risks by seeking new investment opportunities in the future[13]. - The management expresses confidence in a potential rebound of the concrete business as the Chinese economy recovers from COVID-19[11]. - The company plans to continue reviewing business performance and investments to maximize shareholder returns and business growth[13]. - The company anticipates benefiting from economic growth opportunities in Hainan Province due to supportive government policies for the development of a free trade port[11]. - The company plans to allocate more resources to explore new opportunities in the concrete market, particularly in Hainan Province and the Greater Bay Area[72]. - The company is committed to enhancing cost-saving measures in response to the challenging external environment post-pandemic[71]. - The company has not disclosed any significant investment or capital asset plans as of the report date[70]. Corporate Governance - The company emphasizes high standards of corporate governance to enhance shareholder value and protect stakeholder interests[86]. - The company has adopted good corporate governance principles, focusing on effective internal controls and transparency[86]. - The company has complied with all provisions of the corporate governance code as per the Hong Kong Stock Exchange, except for the separation of roles between the Chairman and CEO[87]. - The board believes that the dual role of the Chairman and CEO is in the best interest of the company, ensuring policy continuity and operational stability[88]. - The company has implemented a code of conduct for directors' securities trading, adhering to the standards set by the listing rules[89]. - The company has a strong management team with extensive experience in various fields, including finance and corporate governance[84][80]. - The company is committed to continuously reviewing and improving its corporate governance practices[88]. - The company has a diverse board with members holding qualifications from reputable institutions and extensive industry experience[79][83]. - The board of directors is responsible for managing the overall business and ensuring the creation of conditions for the effectiveness of the board and individual directors[91]. - The board has a duty to maintain complete accounting records to monitor and accurately disclose the financial status of the group[92]. Risk Management - The company has established compliance procedures to ensure adherence to relevant laws and regulations impacting its operations[163]. - The internal control and risk management systems are designed to manage risks affecting business objectives, providing reasonable assurance[114]. - The company identifies key risks including raw material supply disruptions and price fluctuations that could adversely affect its operations[165]. - Credit risk increases during economic downturns, prompting the company to review receivables and ensure adequate provisions for bad debts[166]. - The company continuously monitors the recoverability of loans and borrower status, reporting any delays or breaches to management[158]. - Loan applications are evaluated based on collateral, financial background, repayment ability, and customer reputation to mitigate recoverability risks[156]. Shareholder Engagement and Dividends - The company encourages shareholder participation in annual general meetings to discuss business progress[139]. - The board does not recommend the distribution of a final dividend for the year, consistent with the previous year[148]. - The company has adopted a dividend policy that balances sufficient funding for business growth with shareholder returns[140]. - The board will continue to review the dividend policy and retains the discretion to update or cancel it as necessary[142]. Employee and Board Diversity - Approximately 24% of the group's employees, including senior management, are female, while 76% are male[128]. - The company aims to appoint at least one female director by December 31, 2024, to enhance gender diversity on the board[127]. - The company is committed to identifying and training female employees with leadership potential for advancement to senior management or the board[128]. - The board currently consists solely of male directors, with a service tenure ranging from three to twelve years[127]. - The nomination committee evaluated the board's structure and diversity, assessing the independence of non-executive directors[121]. Audit and Compliance - The audit committee is composed entirely of independent non-executive directors, ensuring objectivity in financial oversight[109]. - The audit committee conducted three meetings to review the annual report and interim report, ensuring the integrity of financial statements[110]. - The external auditor's fees for statutory audit and non-audit services were approximately HKD 1,500,000 and HKD 15,000 respectively[113]. - The company has implemented a whistleblowing policy to protect employees reporting financial misconduct[112]. - The company has engaged external consultants to assess the effectiveness of its risk management and internal control systems[116]. Capital Structure and Share Issuance - The group issued a total of 699 million ordinary shares during the year, increasing the total issued shares to 4,198,098,293 as of March 31, 2023[40]. - The stock option plan adopted on February 26, 2015, has a duration of ten years, with a maximum issuance limit of 30% of the company's issued shares[178]. - The total number of shares that can be issued under the stock option plan is capped at 349,909,829 shares, representing 8.33% of the company's issued shares as of the report date[179]. - The company successfully placed 699,000,000 shares on April 29, 2022, as part of its fundraising activities[184]. Other Financial Information - The company raised approximately HKD 73.4 million through a placement of shares on April 29, 2022, for general working capital and business growth[61]. - The company has a reserve available for distribution as of March 31, 2023, detailed in the financial statements[185]. - The company made a charitable donation of HKD 10,000 during the fiscal year[186]. - The company has no capital commitments as of March 31, 2023, compared to HKD 67.55 million in 2022[56].
华盛国际控股(01323) - 2023 - 年度财报