Financial Performance - The total revenue for the fiscal year ended March 31, 2022, was approximately HKD 213,665,000, a decrease of about 23.4% compared to HKD 279,022,000 in the previous year[13] - Gross profit for the fiscal year was approximately HKD 32,536,000, with a gross profit margin of about 15.2%, an improvement from 2.4% in the previous year[15] - The company recorded a net profit of approximately HKD 11,192,000 for the fiscal year, compared to a net loss of HKD 14,475,000 in the previous year[21] - Other income decreased by approximately 52.9% to HKD 3,505,000, primarily due to the absence of government subsidies from the "Employment Support Scheme" amounting to HKD 4,058,000[17] - Administrative expenses increased by approximately 2.1% to HKD 25,915,000, in line with the inflation rate[19] - The total cost of employee compensation, including directors' remuneration, was approximately HKD 50,320,000 for the year, down from HKD 68,260,000 in the previous year[26] Projects and Contracts - The company had ten ongoing projects with a total contract value of approximately HKD 351,211,000 as of March 31, 2022[11] - The company was awarded two new foundation engineering projects after the fiscal year, with a contract value of approximately HKD 112,006,000[11] Debt and Financial Position - As of March 31, 2022, the group's bank balance was approximately HKD 14,342,000, a decrease from HKD 21,780,000 on March 31, 2021[22] - The group's interest-bearing debt as of March 31, 2022, was approximately HKD 76,445,000, up from HKD 32,630,000 on March 31, 2021[22] - The debt-to-equity ratio as of March 31, 2022, was approximately 45.98%, significantly increased from 21.04% on March 31, 2021, due to higher bank loans and lease liabilities[22] - The total net book value of properties, plants, and machinery held under finance leases was approximately HKD 11,379,000 as of March 31, 2022, compared to HKD 9,111,000 on March 31, 2021[24] - The group had approximately HKD 11,238,000 in bank deposits pledged for bank financing as of March 31, 2022, down from HKD 19,216,000 on March 31, 2021[24] Future Outlook and Strategy - The company remains cautiously optimistic about future business prospects, driven by government-led infrastructure and housing projects[8] - The company plans to closely monitor market developments and adjust business strategies as needed to maintain competitiveness in the construction industry[12] - The company will explore various potential business opportunities to expand revenue sources and maximize shareholder returns[12] Corporate Governance - The company has adhered to all applicable corporate governance codes since its listing date[32] - The company has implemented an adequate internal control system and risk management procedures[132] - The board consists of six directors, including three executive directors and three independent non-executive directors[130] - The company has received annual confirmations of independence from all independent non-executive directors[83] - The company has adopted a shareholder communication policy to ensure timely access to information for shareholders[170] Shareholder Information - The company holds 495,000,000 shares, representing 72.29% ownership by Mr. Chen Liwei through Creative Elite Global Limited[95] - Ms. Chen Qianying holds 7,140,000 shares, accounting for 1.04% of the company's total shares[95] - The group did not declare or recommend any dividends during the reporting period, consistent with the previous year[70] Risk Management - Key risks identified include project changes that may affect revenue generation, leading to potential adverse impacts on profitability[71] - The construction industry is facing intensified competition due to a decrease in available projects and rising construction costs, which has diluted profit margins[72] - The company has established a risk management policy to identify, assess, and manage significant risks affecting the business[165] Audit and Compliance - The financial statements were audited by Kaiyuan Xinde CPA Limited, with no change in auditors during the reporting period[123] - The audit committee held three meetings during the reporting period to review financial reporting principles and the effectiveness of the company's risk management and internal control systems[144] - The audit identified key audit matters, including the recognition of construction contract revenue and the assessment of credit loss provisions[189] Employee Relations - The group employed 138 staff members as of March 31, 2022, with no significant issues related to labor disputes or recruitment difficulties reported during the year[26] - The group has maintained good relationships with employees, customers, and suppliers, with no significant disputes reported during the period[65]
上谕集团(01633) - 2022 - 年度财报