Financial Performance - The group recorded a gross loss of HKD 31.6 million for the fiscal year, including a total gross loss of HKD 54.4 million from delayed projects[7]. - The group incurred a loss of approximately HKD 112.2 million for the year, a substantial increase of 62.8% compared to a loss of approximately HKD 68.9 million in 2022[70]. - The group recorded a gross loss of approximately HKD 31.7 million in construction-related businesses, compared to a gross loss of approximately HKD 34.2 million in 2022, reflecting ongoing challenges in project profitability due to labor shortages and rising costs[57]. - The group reported trade business revenue of approximately HKD 94.6 million, a decrease from HKD 180 million in 2022, with a profit of approximately HKD 0.1 million compared to a loss of HKD 1.5 million in the previous year[59]. - Other income for the reporting year was approximately HKD 12.8 million, significantly up from approximately HKD 6 million in 2022, mainly due to one-time income sources[63]. Revenue Sources - The total value of contracts obtained in mainland China amounted to approximately HKD 399 million, with revenue generated from these contracts being HKD 216.5 million and a profit of HKD 4.3 million[12]. - The construction-related business reported segment revenue of approximately HKD 529.5 million, a significant increase of 57.9% compared to HKD 335.3 million in the previous year[48]. - Revenue from new contracts in mainland China and Malaysia contributed approximately HKD 216.5 million to the overall revenue growth[48]. - Revenue from waterworks contracts surged from approximately HKD 5.3 million to HKD 32.6 million, driven primarily by contract 2WSD21, which contributed around HKD 31.2 million[49]. - The group generated approximately 48% of its total revenue from government contracts during the reporting year, down from 63% in the previous year[178]. Contractual Obligations - The total amount of unfinished contracts as of March 31, 2023, was approximately HKD 760.1 million, an increase from HKD 715.5 million as of March 31, 2022[14]. - The total confirmed revenue from major contracts as of March 31, 2023, was HKD 2,036.9 million, with an estimated contract value of HKD 2,384.3 million[42]. - The company has submitted applications for further extensions on contract completion dates, which are currently under consideration by clients[45]. - The group has two major private construction projects and 12 government contracts on hand as of the reporting date[14]. Market Opportunities - The group is exploring opportunities in the mainland China and overseas construction markets to support growth and expansion[8]. - The group is in discussions with a well-known international hotel brand to develop serviced apartments and residential properties in the Philippines[13]. - The company is exploring opportunities in different markets, including property development in the Philippines and chemical materials trading in mainland China, facing various operational risks[187]. Operational Challenges - The group anticipates continued pressure on performance in the construction-related sectors due to the ongoing impact of the pandemic[14]. - The company operates in a labor-intensive industry, and any labor shortages or significant increases in labor costs could adversely affect operational and financial performance[182]. - Political disagreements and delays in public project approvals may lead to operational delays, negatively impacting business performance[186]. - The company faces risks related to reliance on government contracts, which could adversely affect its business and profitability if not secured[178]. Governance and Management - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced representation[98]. - The company has adopted a board diversity policy since its listing date, with measurable targets and progress disclosed[104]. - The board plans to appoint at least one female director by December 31, 2024, despite currently having a 100% male board and approximately 18% female employees[109]. - The company has held two regular board meetings and various committee meetings during the reporting year, ensuring proper governance and decision-making processes[112]. - The board acknowledges its responsibility to prepare the consolidated financial statements to reflect the group's affairs fairly and accurately[142]. Risk Management - The group has established a risk management framework that includes the board, audit committee, and risk management committee to oversee risk management effectiveness[146]. - The risk management process includes identifying potential risks, assessing their impact, and implementing response plans[148]. - The risk management committee meets at least once a year to review the overall risk management strategy and effectiveness[146]. - The Risk Management Committee reviewed the group's risk management work report for 2022 and updated the major risks and key risk indicators for 2023[139]. Employee and Compensation - The group employed a total of 284 employees, comprising 191 full-time and 93 temporary staff, with employee costs reaching approximately HKD 90 million, up from HKD 80.9 million in 2022[86]. - During the reporting year, the remuneration of directors and senior management ranged from less than HKD 1,000,000 to over HKD 2,000,000, with 2 members earning below HKD 1,000,000 and 3 members earning between HKD 1,000,001 and HKD 1,500,000[141]. Environmental and Social Responsibility - The company has implemented various environmental protection measures, including double-sided printing and encouraging paper recycling[164]. - The company is committed to sustainable practices and has implemented environmental management plans for all contracts[188]. - The company encourages employees to protect the environment and raises awareness of environmental issues[164]. - The company has established a whistleblowing policy to allow employees and other stakeholders to raise concerns confidentially and anonymously[169]. Shareholder Relations - The company continues to enhance investor relations and communication with existing and potential investors[160]. - The company has conducted an annual review of its shareholder communication policy, concluding it was effectively implemented for the year ending March 31, 2023[161]. - The company has not experienced any significant changes in its main business activities during the reporting year[175].
均安控股(01559) - 2023 - 年度财报