Financial Performance - The Group recorded a revenue decrease of approximately HK$30,382,000 or approximately 10.3%, totaling approximately HK$263,217,000 for the year ended 31 March 2022 compared to HK$293,599,000 for the year ended 31 March 2021[10] - The decrease in revenue was primarily attributed to a reduction in the number of sizable projects tendered by the Group during the Reporting Period[10] - The Group's total revenue decreased by approximately HK$30,382,000 or approximately 10.3%, from approximately HK$293,599,000 for the year ended 31 March 2021 to approximately HK$263,217,000 for the Reporting Period[35] - Revenue from foundation construction projects decreased by approximately HK$3,090,000 or approximately 1.4%, from approximately HK$221,550,000 to approximately HK$218,460,000[35] - Revenue from ground investigation services decreased by approximately HK$26,014,000 or approximately 40.2%, from approximately HK$64,772,000 to approximately HK$38,758,000[36] - Revenue from financial services amounted to approximately HK$3,190,000, compared to approximately HK$3,614,000 in the previous year[37] - Revenue from trading of beauty and skin care products amounted to approximately HK$2,810,000, down from approximately HK$3,662,000 in the previous year[38] - The Group's gross profit decreased from approximately HK$56,973,000 for the year ended 31 March 2021 to approximately HK$52,813,000 for the Reporting Period, with an overall gross profit margin of approximately 20.1% (YR2021: approximately 19.4%) [44] - Gross profit from the foundation construction segment increased from approximately HK$24,184,000 to approximately HK$35,123,000, with a gross profit margin of approximately 16.1% (YR2021: approximately 10.9%) [44] - The gross profit of the ground investigation services segment decreased by approximately 54.2% to approximately HK$11,691,000, with a gross profit margin dropping from approximately 39.4% to approximately 30.2% [44] - The Group recorded a net loss of approximately HK$12,757,000 for the Reporting Period, compared to a net loss of approximately HK$12,240,000 for the year ended 31 March 2021[56] Strategic Outlook - The Board anticipates that the adverse economic effects from the Omicron coronavirus outbreak will be transitory, with hopeful signs of a steady recovery in the construction and foundation industry in Hong Kong[11] - Future strategies will be contingent on the evolution of the pandemic, with a prudent approach to tendering potential projects[11] - The Group plans to seek cooperation and investment opportunities with high-quality companies in emerging industries to diversify and expand its business[18] - The Group will adopt a cautious approach to potential project tenders, with future strategies dependent on the development of the pandemic situation[13] - The Group's strategy will depend on the evolution of the pandemic, with a focus on prudent tendering for potential projects in the construction and foundation industry[69] Corporate Governance - The Company aims to enhance transparency and strengthen accountability to shareholders through good corporate governance standards[135] - The Group is committed to continuously improving its corporate governance practices through periodic reviews[137] - The Company has complied with all applicable principles and code provisions in the Corporate Governance Code during the reporting period[134] - The Company has developed and monitored a code of conduct applicable to Directors and employees[159] - The Company has established an Audit Committee consisting of three independent non-executive Directors, with Mr. Lo Wa Kei Roy as the chairman[172] - The primary duties of the Audit Committee include overseeing the financial reporting system and internal control procedures[176] - The Company has not appointed a Chief Executive Officer during the Reporting Period, with the Chairman providing strategic guidance[166] - The Board believes that good corporate governance will support the Group in achieving its business objectives[136] Employee and Remuneration - The total remuneration cost incurred by the Group for the Reporting Period was approximately HK$70,015,000, a decrease from approximately HK$70,892,000 for the year ended March 31, 2021[96] - As of March 31, 2022, the Group had 124 full-time employees, down from 137 full-time employees as of March 31, 2021[94] - The remuneration of senior management is categorized by band during the reporting period, indicating a structured approach to compensation[195] - Directors' emoluments are determined based on their duties, responsibilities, performance, and the group's results, with annual reviews conducted by the Remuneration Committee[191] - The Company aims to align executive remuneration with performance metrics and corporate objectives[200] Risk Management - The Group's key risk exposures include reliance on a concentrated clientele base and potential revenue fluctuations due to project-based income[98] - The Group maintains long-term relationships with customers, with some relationships exceeding 10 years[101] - The Group has guaranteed profits of HK$10,000,000 and HK$20,000,000 for the years ended March 31, 2021, and March 31, 2022, respectively, related to the acquisition of 35% of Matsu Gami[89] Investment and Financial Position - Part of the net proceeds from the placing of 160,000,000 new ordinary shares raised approximately HK$134.0 million, with specific allocations for funding acquisitions and general working capital[62] - As of 31 March 2022, approximately HK$70.7 million of the net proceeds was allocated for further possible acquisitions, while HK$6.0 million was designated for general working capital[65] - The total interest-bearing borrowings of the Group amounted to approximately HK$245.4 million in FY2022, compared to approximately HK$236.1 million in FY2021[71] - The Group's current liabilities as of March 31, 2022, were approximately HK$284,621,000, representing an increase of approximately HK$3,270,000 from HK$281,351,000 as of March 31, 2021[74] - The Group maintained cash and bank balances of approximately HK$132,294,000 as of March 31, 2022, a decrease of approximately HK$4,653,000 from HK$136,947,000 as of March 31, 2021[74] Compliance and Legal Matters - The Group has not adopted any currency hedging policy during the Reporting Period, as it primarily operates in Hong Kong dollars, minimizing foreign exchange risk[83] - The Company has complied with the Listing Rules regarding the independence of its Directors, with all independent non-executive Directors confirmed as independent[152] - The Board has reviewed and monitored the Group's compliance with legal and regulatory requirements during the Reporting Period[159]
宏基集团控股(01718) - 2022 - 年度财报