Financial Performance - The company's revenue for the fiscal year ended March 31, 2023, was approximately HKD 323.7 million, a decrease of 24.2% compared to HKD 427 million in the previous year[9]. - The loss attributable to shareholders for the fiscal year was approximately HKD 8.4 million, compared to a profit of HKD 12 million in the previous year[13]. - The company reported a basic and diluted loss per share of HKD 0.84, down from a profit of HKD 1.20 per share in the previous year[9]. - The gross profit margin for the year ended March 31, 2023, was 1.2%, down from 7.5% in 2022, primarily due to increased costs of fuel, raw materials, direct labor, and subcontracting[21]. - Other income and net gains for the year ended March 31, 2023, were approximately HKD 8.8 million, an increase of 1,231.5% from HKD 700,000 in 2022[21]. - Administrative and operating expenses for the year ended March 31, 2023, were approximately HKD 23 million, an increase of 17.9% from HKD 19.5 million in 2022[21]. - The company's distributable reserves amounted to approximately HKD 91.3 million, a decrease from HKD 95.9 million in 2022[61]. - The company did not recommend a final dividend for the year ended March 31, 2023, compared to no dividend in 2022[45]. Revenue Decline Factors - The decline in revenue was primarily due to the completion of two projects (W56 and W57) and the completion of two other projects (W49 and W52) in the previous fiscal year, leading to reduced civil engineering revenue[13]. - Increased costs due to labor and supply shortages, along with rising fuel, raw material, direct labor, and subcontracting costs, contributed to a decrease in gross profit margin[13]. Future Plans and Opportunities - The company plans to actively participate in government tender projects, particularly in civil engineering, to secure more project revenue[14]. - The company anticipates multiple infrastructure projects to be launched by the government in the northeastern New Territories of Hong Kong, especially in land leveling, road, and drainage works[14]. - The company aims to leverage its competitive advantages post-listing to pursue more projects and achieve revenue growth[16]. - The company will continue to seek various business opportunities within the construction industry to create greater value for shareholders[16]. Cost Control and Financial Management - The company emphasizes strict cost control measures to mitigate uncertainties arising from post-pandemic effects and international tensions[16]. - The group aims to mitigate the impact of global economic instability and rising costs through strict cost control measures[24]. Cash and Financing - The group had cash and cash equivalents of approximately HKD 55.1 million as of March 31, 2023, compared to HKD 53.4 million in 2022[25]. - The group's unutilized bank financing was approximately HKD 79 million as of March 31, 2023, compared to HKD 76.5 million in 2022[25]. - The capital debt ratio as of March 31, 2023, was approximately 0.7%, up from 0.3% in 2022[27]. - As of March 31, 2023, the group pledged approximately HKD 4,200,000 in bank deposits as collateral for bank financing, a decrease from HKD 6,600,000 in 2022[32]. Corporate Governance - The company has adopted measures to maintain high standards of corporate governance, recognizing its importance for performance, transparency, and accountability[119]. - The board consists of nine directors, including three executive directors, one non-executive director, and five independent non-executive directors[128]. - The company has established mechanisms for directors to seek independent professional advice to fulfill their responsibilities, with satisfactory execution of these mechanisms reviewed annually[132]. - The company has complied with all applicable provisions of the corporate governance code during the fiscal year ending March 31, 2023, with minor deviations noted[119]. - The board held four meetings and one annual general meeting during the fiscal year ending March 31, 2023, with all executive directors attending 100% of the board meetings[140]. Risk Management - The company has established a risk management and internal control system to address potential risks, including liquidity, fraud, financial reporting, operational, and compliance risks[169]. - The board of directors confirmed that there were no significant internal control failures identified during the review of the risk management and internal control system[169]. Employee and Management Structure - Employee costs for the year ended March 31, 2023, were approximately HKD 57,400,000, down from HKD 73,900,000 in 2022, with a total of 132 employees compared to 189 in the previous year[37]. - The executive team includes three brothers, all serving as executive directors, indicating a strong family influence in management[191]. - The company emphasizes the importance of experience in its leadership, with directors having extensive backgrounds in their respective fields[198]. Sustainability and Social Responsibility - The group established a sustainability committee to address major environmental, social, and governance issues impacting its business and stakeholders[54]. - The company is focused on sustainable development, with a dedicated committee chaired by a non-executive director[195]. Shareholder Relations - The company encourages shareholder participation in annual general meetings and regularly reviews the format to meet shareholder needs[187]. - The company’s communication policy ensures shareholders can access information regarding financial performance, strategic goals, and significant business developments[181].
生兴控股(01472) - 2023 - 年度财报