Financial Performance - The Group's revenue for the financial year 2022/23 was HK$332.4 million, down HK$129.8 million from FY21/22[29]. - Gross profit decreased to HK$5.2 million, a decline of HK$86.5 million compared to FY21/22[30]. - For the financial year 2022/23, the Group recorded a net loss of HK$15.3 million, compared to a profit of HK$74.3 million in the previous year[52][55]. - Revenue for the financial year 2022/23 was approximately HK$332.4 million, a decrease of HK$129.8 million from HK$462.2 million in 2021/22[50][51]. - Gross profit for the financial year 2022/23 was approximately HK$5.2 million, down from HK$91.7 million in the previous year, resulting in a gross profit margin decrease to 1.6% from 19.8%[51][53]. - Administrative and other operating expenses increased to approximately HK$22.3 million, primarily due to foreign exchange losses from Renminbi deposits[52][54]. Contracts and Projects - The Group was awarded 2 new contracts with an aggregate contract sum of HK$156.1 million, compared to 5 new contracts totaling HK$411.6 million in the previous financial year[16]. - The Group was awarded two new projects with a total contract value of HK$156.1 million during the financial year 2022/23[42][53]. - As of March 31, 2023, there were seven ongoing or yet-to-commence projects with an outstanding contract sum of HK$427.1 million[42][53]. - The top five projects contributed revenue of HK$316.2 million, with the largest project accounting for 46.4% of total revenue[50][51]. Operational Challenges - The adverse financial results were impacted by loss-making projects due to delays caused by adverse weather and other unforeseen difficulties[15]. - The Group experienced temporary manpower shortages due to COVID-19 infections among staff, which slowed down project progress[14]. - The management is seeking extensions for project completion from employers due to delays caused by uncontrollable factors[15]. - The Group faces risks related to construction delays and potential claims for damages, which could adversely impact financial performance[59][62]. - The Group's financial performance may be adversely affected if it is unable to secure new tenders or obtain new contract awards with comparable contract sums after completing existing contracts[66]. Strategic Focus - The Group aims to focus on "design and build" projects to maintain profit margins and safeguard shareholder interests moving forward[23]. - The Group's focus on design and build projects allows for more cost-efficient construction solutions[41][53]. - The management expressed confidence in the construction industry's resilience as the local economy gradually recovers from COVID-19[23]. - The Group expects a rebound in the foundation industry in the medium run due to government policies on land supply and infrastructure investments[98]. - The Group plans to expand capacity and enhance project management skills to maintain its competitive edge[98]. Leadership and Management - The company has a strong leadership team with extensive experience across various sectors of the construction and engineering industries[106]. - The company is focused on project management, quality control, and strategic development in the construction sector[105]. - The company aims to leverage its experienced management team to enhance operational efficiency and market competitiveness[108]. Financial Position - As of March 31, 2023, the current ratio improved to 4.3 from 3.8 in 2022[83]. - The gearing ratio decreased to 7.4% as of March 31, 2023, down from 6.7% in 2022, primarily due to the repayment of HK$5.0 million in lease liabilities[83]. - The Group's cash and bank balances were HK$112.0 million as of March 31, 2023, compared to HK$147.8 million in 2022, with HK$43.6 million being restricted bank balances[83]. - The Group had no bank overdrafts as of March 31, 2023, maintaining a light debt leverage[83]. - The capital structure consisted of equity of HK$274.4 million and debts of HK$18.3 million as of March 31, 2023[83]. Shareholder Information - The Group's reserves available for distribution to equity shareholders amounted to approximately HK$130,692,000 as of 31 March 2023[141]. - The Board has resolved not to declare a final dividend for the Financial Year 2022/23[128]. - The largest customer contributed 46.4% to the Group's sales, with the five largest customers combined accounting for 95.1%[189]. - The largest supplier accounted for 19.2% of the Group's purchases, while the five largest suppliers combined represented 59.6%[186]. Compliance and Governance - The Company has complied with all necessary registrations and certifications for its business operations in Hong Kong during the financial year 2022/2023[78]. - The Company has received annual confirmations of independence from all independent non-executive Directors[152]. - The independent non-executive directors have confirmed compliance with the non-competition agreements, with no known violations since their inception[171]. - The company has taken out insurance against liabilities and costs associated with defending proceedings against its directors[161]. - The controlling shareholders have declared compliance with the undertakings given under the non-competition agreements disclosed in the prospectus[170]. Employee Information - The Group had 53 full-time employees as of March 31, 2023, an increase from 51 in 2022[87]. - The Group has a low staff turnover rate of 5% in the project management team in 2023, indicating a stable workforce[74].
现恒建筑(01500) - 2023 - 年度财报