Financial Performance - The Group's overall revenue decreased by approximately 67.4% to approximately HK$245,349,000 for the year ended March 31, 2023, compared to HK$751,767,000 in 2022[14]. - The loss attributable to owners of the Company amounted to approximately HK$74,115,000 for the year ended March 31, 2023, compared to a profit of HK$18,346,000 in 2022[14]. - The overall gross profit margin decreased from approximately 4.0% for the year ended 31 March 2022 to a gross loss margin of approximately 11.8% for the year ended 31 March 2023[28]. - The Group reported a net loss of approximately HK$74,115,000 for the year ended 31 March 2023, compared to a net loss of HK$18,346,000 in 2022[40]. - The Group's other income increased from approximately HK$8,084,000 during the year ended 31 March 2022 to approximately HK$10,239,000 during the year ended 31 March 2023, mainly due to a non-recurring government grant[32]. - Administrative and other operating expenses decreased by 15.9% from approximately HK$46,441,000 during the year ended 31 March 2022 to approximately HK$39,050,000 during the year ended 31 March 2023[33]. - The net provision for expected credit loss on trade receivables increased from approximately HK$910,000 during the year ended 31 March 2022 to approximately HK$6,000,000 during the year ended 31 March 2023[34]. - The Group's finance costs increased from approximately HK$8,825,000 during the year ended 31 March 2022 to approximately HK$10,321,000 during the year ended 31 March 2023[39]. - As at 31 March 2023, the total debts of the Group were approximately HK$211,686,000, a decrease from HK$281,749,000 in 2022[41]. - The Group's gearing ratio as of March 31, 2023, was approximately 20,632.2%, significantly higher than 375.0% as of March 31, 2022[57]. - The current ratio of the group as of March 31, 2023, was approximately 1.0, down from approximately 1.2 as of March 31, 2022[57]. - The group had pledged bank deposits and cash balances of approximately HK$98,074,000 as of March 31, 2023, compared to HK$126,283,000 as of March 31, 2022[57]. Strategic Outlook - The economic environment in Hong Kong is expected to gradually recover as the government relaxes pandemic-related restrictions and reinstates cross-border activities[15]. - The Group remains optimistic about the foundation and construction industry in Hong Kong due to increased land supply for housing developments and infrastructure plans[16]. - The Group will continue to explore suitable investment opportunities to broaden its revenue base and maximize returns to shareholders[20]. - The Group is actively seeking development opportunities in sectors such as new energy and new raw materials to increase profitability and diversify its operations[20]. - The group has minimal exposure to foreign currency risk, with most transactions denominated in HK$[59]. Corporate Governance - The Board is committed to high standards of corporate governance and has complied with all applicable code provisions as set out in the Corporate Governance Code[75][76]. - The Board currently consists of six members, including three Executive Directors and three Independent Non-executive Directors, ensuring a balance of skills and experience[85][89]. - The Company has complied with the Listing Rules regarding the appointment of Independent Non-executive Directors[103]. - All Independent Non-executive Directors confirmed their independence from the Company as per the Listing Rules[104]. - The Company has adopted a Board Nomination Policy to recommend candidates for election as Directors at general meetings or to fill casual vacancies[128]. - The Nomination Committee uses various selection criteria, including integrity, experience, commitment, and diversity, to assess proposed candidates[130]. - The Remuneration Committee is responsible for making recommendations on the remuneration policy and structure for all Directors and senior management[132]. - The Board has reviewed the Company's policies and practices on corporate governance during the year ended March 31, 2023[142]. - The Company has established Board Committees to oversee specific aspects of its affairs and ensure effective governance[112]. Human Resources - As of March 31, 2023, the Group had 98 employees, a decrease from 160 employees in 2022, with total staff costs of approximately HK$50,259,000, down from HK$69,290,000 in 2022[68][73]. - The total staff costs incurred by the Group during the year ended March 31, 2023, were approximately HK$50,259,000, reflecting a reduction of about 27.5% from the previous year[68][73]. - The Group's remuneration policy includes periodic reviews and potential salary increments based on individual performance assessments[68][73]. - The remuneration paid to senior management during the year ended March 31, 2023, included 1 person in the band of HK$1,000,001 to HK$1,500,000, 1 person in the band of HK$1,500,001 to HK$2,000,000, and 1 person in the band of HK$2,000,001 to HK$2,500,000[141]. Risk Management and Internal Control - The Group's risk management and internal control procedures aim to safeguard assets against misappropriation and ensure reliable accounting records[150]. - The Group's internal control procedures, including financial, operational, and compliance controls, are considered effective and adequate by the Board[156]. - The Board conducted an annual review of the effectiveness of the Group's internal control procedures for the year ended March 31, 2023, with no significant areas of improvement identified[155]. - The Company did not establish a standalone Internal Audit Department but has implemented measures for internal audit functions[149]. - The Company has implemented procedures for responding to external inquiries about the Group's affairs[165]. ESG Commitment - The Group's ESG report for the year ended March 31, 2023, demonstrates its commitment to sustainable development by delivering environmental, social, and economic benefits to stakeholders[190]. - The ESG report is prepared in accordance with the Environmental, Social and Governance Reporting Guide and covers the principal businesses of the Group[191]. - The Group emphasizes the "Materiality" principle in determining significant ESG issues through stakeholder engagement and materiality assessment[194]. - The Board oversees the Group's ESG strategies and compliance with ESG-related laws and regulations, ensuring alignment with the requirements set by the Board[196]. - During the year ended March 31, 2023, substantial time was spent by the Board, management, and the ESG Working Team evaluating ESG-related risks and formulating relevant policies[195]. - Regular Board meetings are held to monitor progress, targets, and goals related to ESG performance[196].
剑虹集团控股(01557) - 2023 - 年度财报