Financial Performance - The group's revenue reached approximately HKD 242.8 million, representing a significant year-on-year increase of 67.8%[6] - The net loss narrowed to approximately HKD 4.5 million, a reduction of about HKD 1.6 million compared to the previous year[6] - Gross profit for the year was approximately HKD 17.4 million, a decrease of about HKD 5.7 million or 24.7% year-on-year[15] - The gross profit margin fell to approximately 7.2%, down 8.8 percentage points from approximately 16.0% in the previous year[15] - Other income and losses amounted to approximately HKD 1.5 million, a decrease of about HKD 3.4 million or 69.4% year-on-year[16] - Administrative and other operating expenses were approximately HKD 22.4 million, a decrease of about HKD 0.4 million or 1.8%[18] - Impairment losses on financial and contract assets were approximately HKD 1.0 million, a significant decrease of about HKD 10.6 million or 91.4%[19] Projects and Contracts - The group has 9 ongoing projects with a total original contract value of approximately HKD 422.4 million as of March 31, 2022[11] - Two new projects were awarded after March 31, 2022, with an original contract value of approximately HKD 149.7 million[12] Cash and Debt Management - As of March 31, 2022, the group had a total bank balance (including pledged bank deposits) of approximately HKD 23.0 million, down from approximately HKD 44.8 million as of March 31, 2021[23] - The group had no outstanding debts as of March 31, 2022, consistent with the previous year[24] - The group has pledged bank deposits of approximately HKD 5.0 million to secure bank financing, unchanged from the previous year[27] - The group’s debt-to-equity ratio was zero as of March 31, 2022, the same as the previous year[26] Capital Expenditures and Investments - The group invested approximately HKD 2.5 million in capital expenditures for the purchase of properties, plants, and equipment during the year, funded entirely by internal resources[30] - The group has no significant capital commitments or contingent liabilities as of March 31, 2022[31] - The group did not engage in any significant acquisitions or disposals of subsidiaries during the review year[32] - The group has no major investment plans or capital asset projects beyond those disclosed in the "Use of Proceeds" section[34] Corporate Governance - The company is committed to maintaining good corporate governance to protect shareholder interests and maximize shareholder value[51] - The board consists of six members, including three executive directors and three independent non-executive directors[54] - The company has adopted the corporate governance code as per the Listing Rules and has complied with it throughout the review year[52] - The company has a diversified board policy aimed at enhancing the quality and effectiveness of the board[57] - The financial director, Mr. Xu, has over 20 years of experience in accounting and finance, overseeing financial reporting and planning[49] - The technical director, Mr. Chan, has over 40 years of experience in the construction industry, providing technical support for foundation engineering[48] - The independent non-executive director, Mr. Liang, has over 20 years of legal experience and has served on various committees related to transport and logistics[45] - The company has a structured approach to ensure compliance with relevant laws and regulations, enhancing accountability[51] - The board has implemented a nomination policy to ensure a diverse and effective board composition[56] - The company’s independent non-executive directors have been actively involved in various regulatory and advisory roles, contributing to governance[44] - The board considers various aspects of diversity, including gender, age, cultural and educational background, and professional experience when appointing members[59] - The selection criteria for board candidates include integrity, industry achievements, commitment of time, and ability to support the group's management[60] - The board is responsible for overall management and delegates daily operations to the management team led by the CEO[70] - The board's main responsibilities include setting long-term goals, approving major policies, and reviewing financial statements[71] - The company has three independent non-executive directors, constituting over one-third of the board, ensuring compliance with listing rules[66] - The company has a dividend policy that considers operational performance, retained earnings, cash flow, and future investment needs[64] - The company provides training for directors to enhance their knowledge and skills, covering applicable laws and regulations[79] - The board must review its structure and diversity regularly to ensure effective governance[61] - The company has established insurance for all directors to cover their responsibilities[78] - The board's nomination committee monitors the implementation of diversity policies and reviews nomination policies for effectiveness[59] - The board of directors held five meetings during the review year, with all members attending 100% of the meetings[90] - The audit committee conducted two meetings, with all members present at each meeting, ensuring thorough oversight of financial reporting[99] - The company has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, to enhance governance and oversight[95] - The audit committee reviewed the consolidated financial statements for the year, confirming compliance with applicable accounting standards and regulations[97] - The nomination committee held two meetings to assess board structure, diversity, and the independence of non-executive directors[109] - The remuneration committee is responsible for reviewing the overall remuneration policy for all directors and senior management, ensuring alignment with corporate goals[112] - The company has a clear board meeting procedure, with written notifications sent at least 14 days prior to meetings[86] - The company secretary ensures that all board meeting records are maintained and available for review by directors[87] - The company has not held any additional shareholder meetings outside of the annual general meeting during the review year[88] - The audit committee has the authority to seek independent professional advice when necessary, with costs covered by the company[96] - The compensation committee consists of one executive director and two independent non-executive directors, ensuring no conflicts in determining personal compensation[113] - During the review period, the salary range for senior management was reported, with two individuals earning between HKD 0 and HKD 1,000,000[114] - The committee held two meetings during the review period, with all members attending both sessions[118] - The committee's main responsibilities included reviewing the compensation policy and structure for directors and senior management based on performance and market practices[118] Risk Management and Compliance - The group has established guidelines for approving and controlling expenditures to ensure the reliability of financial reporting and compliance with applicable laws[128] - The company has implemented a whistleblowing procedure to allow employees to report potential misconduct confidentially[128] - The board confirmed its responsibility for risk management and internal control systems, assessing the nature and extent of risks the group is willing to accept[127] - The company secretary has completed no less than 15 hours of professional training to enhance skills and knowledge during the review period[132] Shareholder Engagement - All shares of the company have the same voting rights and entitlement to dividends, as outlined in the company's articles and Cayman Islands company law[133] - The company emphasizes the importance of maintaining ongoing dialogue with shareholders and investors, ensuring timely and balanced communication of company information[138] - The annual general meeting is scheduled for September 8, 2022, with a notice to be sent to shareholders at least 20 full business days prior[140] - The company has not made any significant changes to its articles of association during the review period[140] Environmental, Social, and Governance (ESG) - The board is committed to environmental, social, and governance (ESG) principles, integrating appropriate measures to minimize negative environmental impacts[143] - The company has conducted a comprehensive internal materiality assessment to identify key ESG issues prioritized by stakeholders[145] - The ESG report is prepared in accordance with the guidelines set out in the listing rules, aiming to disclose the company's major measures and activities in ESG during the review period[147] - The company values stakeholder feedback on its ESG policies and practices, believing that diverse opinions will enhance future sustainable performance[155] - The board is responsible for all significant ESG compliance matters, with a dedicated team collecting and integrating ESG data for performance assessment[145] - The company ensures the objectivity and fairness of its ESG report by involving multiple departments in data collection[151] - The methods used in preparing the ESG report are consistent with those from the previous year[152] Environmental Performance - Total energy consumption for the year was approximately 5,200,884 kWh, an increase from 3,660,000 kWh in the previous year[172] - Total greenhouse gas emissions (CO2 equivalent) increased to 1,334 tons, while other air pollutants such as nitrogen oxides and sulfur oxides saw slight increases[172] - Water consumption decreased by 83.5% due to fewer high-water projects undertaken during the year[172] - The energy consumption density was 21,465 kWh per million HKD, down from 25,345 kWh per million HKD in the previous year[172] - The company implemented energy-saving measures, including the use of energy-efficient equipment and regular maintenance of vehicles and machinery[162] - The total emissions of greenhouse gases per million sales decreased from 6.8 to 5.5[168] - The company reported no harmful waste generated during operations, with only general office waste and construction waste being produced[166] - The company is committed to further efforts in energy conservation and reducing air pollutants to improve environmental performance[172] - The total fuel and diesel consumption was 462,999 liters, an increase from 313,678 liters in the previous year[168] - The company actively participates in environmental seminars and updates its knowledge on climate issues affecting operations[161] - The total construction waste generated by the group increased to 117,113 tons in the fiscal year 2022, compared to 36,265 tons in 2021, representing a significant rise[173] - The density of construction waste per million sales rose to 483 in 2022 from 251 in 2021, indicating a higher waste generation relative to sales[173] - The group disposed of 116,790 tons of inert construction waste at public fill reception facilities in 2022, a substantial increase from 36,122 tons in 2021[173] Employee Management and Safety - The employee turnover rate increased from approximately 17% in the previous year to about 21% in 2022, with the highest turnover rate among employees aged 51 to 60[183] - The group employed a total of 72 employees as of March 31, 2022, up from 61 at the beginning of the fiscal year[183] - The group provided 400 hours of safety training in the fiscal year 2022, with construction workers receiving an average of 7 hours each[188] - The group strictly prohibits the use of child labor or forced labor, ensuring compliance with local laws and regulations[179] - The management team actively seeks partnerships and external advice to enhance sustainability and compliance across the supply chain[173] - The group emphasizes a positive organizational culture to enhance employee productivity and retention[187] - The group implemented various COVID-19 preventive measures in the workplace, including distributing masks and encouraging social distancing[188] - In the fiscal year 2022, the company reported a total of 3 work-related injuries, resulting in a loss of 64 workdays, with 62 days lost due to an injury involving an employee of the company[191] - The training program in fiscal year 2022 saw 64 male employees and 1 female employee trained, with an average training duration of 5.9 hours and 3.0 hours respectively, achieving a training participation rate of 90%[192] - The company had 97 major suppliers from Hong Kong in the review year, a decrease from 109 in the previous year[199] - The procurement team regularly monitors and reviews existing suppliers to ensure compliance with standards, with poor-performing suppliers being removed from the approved list[198] - The company has established a performance evaluation mechanism to ensure employees are assessed in an unbiased environment[195] - The company aims to maintain high safety standards, having recorded no fatalities due to work-related incidents over the past three years[191] - The average training hours per employee in fiscal year 2021 was 6.2 hours, with a training participation rate of 80%[192] - The company emphasizes the importance of long-term relationships with reliable recurring clients, which enhances its reputation and integrity[200] - The company has implemented a rigorous procurement process that includes evaluating suppliers based on quality, price, and environmental considerations[198] - The company is committed to improving employee performance through extensive training and development opportunities[192]
汛和集团(01591) - 2022 - 年度财报