Financial Performance - The company recorded a net profit of approximately HKD 810,000, a decrease of about HKD 2.1 million compared to the previous period, primarily due to a decline in revenue and gross margin [7]. - Revenue from foundation engineering services reached approximately HKD 326.5 million, a decrease of about HKD 185.1 million or 36.2% compared to the previous year [13]. - The gross profit for the period was approximately HKD 4.0 million, down about HKD 14.9 million or 78.9% from HKD 18.9 million in the previous year [14]. - Other income increased to approximately HKD 17.5 million, a rise of about HKD 11.6 million or 199.5% compared to HKD 5.8 million in the previous year [18]. - The financing costs for the period amounted to approximately HKD 824,000, an increase of about HKD 380,000 or 85.6% compared to HKD 444,000 in the previous year [21]. - The expected credit loss provision was approximately HKD 1.9 million, an increase of about HKD 1.7 million compared to HKD 232,000 in the previous year [20]. - The company maintained stable administrative expenses of approximately HKD 22.3 million during the period [19]. - The management remains cautiously optimistic about the company's future financial performance, expecting stability and potential profit growth [11]. Contracts and Projects - As of March 31, 2023, the company had over HKD 160.0 million in unconfirmed contract amounts, indicating potential for acquiring more contracts [11]. - The company completed 8 projects with a total original contract amount of approximately HKD 548.6 million during the period [12]. Capital and Cash Management - The total cash and cash equivalents amounted to approximately HKD 17.2 million as of March 31, 2023, an increase from HKD 11.9 million in 2022, primarily due to collections from contract assets [24]. - The debt-to-equity ratio as of March 31, 2023, was approximately 49.6%, down from 53.3% in 2022, attributed to a decrease in total debt by about HKD 559,000 [24]. - Capital expenditures during the period were approximately HKD 8.2 million for the purchase of property, plant, and equipment, funded mainly by internal resources [29]. - The total employee cost, including director remuneration, was approximately HKD 88.7 million for the period, slightly up from HKD 88.6 million in 2022 [38]. - The available reserves for distribution as of March 31, 2023, were approximately HKD 40,432,000, down from HKD 43,244,000 in 2022 [57]. - The company had no capital commitments as of March 31, 2023, consistent with the previous year [30]. Shareholder and Governance - The company did not declare any final dividends for the period, consistent with the previous year [47]. - The stock option plan allows for a maximum issuance of 120,000,000 shares, representing 10% of the total shares issued as of the listing date [59]. - The exercise price for any specific stock options granted under the plan cannot be less than the higher of the closing price on the grant date or the average closing price over the five trading days preceding the grant date [60]. - As of March 31, 2023, there were no unexercised stock options, and no options were granted, exercised, canceled, or expired during the relevant period [61]. - The company has not entered into any management or administrative contracts related to its overall or any significant part of its business during the relevant period [66]. - The company has made appropriate insurance arrangements for its directors and senior management against legal claims arising from corporate activities [73]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a diverse range of business experience and expertise [125]. - The company has adopted the corporate governance code as per the listing rules, with a commitment to transparency and accountability [122]. - All independent non-executive directors have confirmed their independence according to the listing rules, ensuring compliance with governance standards [128]. - The company held three board meetings and one shareholders' meeting during the reporting period, with full attendance from all directors [129]. - The chairman and CEO roles are currently held by the same individual, Mr. Chen, which the board believes enhances operational efficiency despite deviating from governance code recommendations [123]. - The company is committed to reviewing and potentially separating the roles of chairman and CEO in the future as appropriate [123]. Risk Management and Compliance - The company engaged an external independent consultant to review the effectiveness of its risk management and internal control systems during the period [153]. - The board believes that the risk management and internal control systems remain effective during the period [153]. - The company has complied with all relevant laws and regulations during the reporting period, ensuring significant operational integrity [103]. - The company has maintained compliance with environmental regulations, with no significant violations reported during the fiscal year [190]. Environmental, Social, and Governance (ESG) - The company is committed to sustainability, focusing on reducing environmental impacts through energy-efficient practices and materials in construction projects [102]. - The board of directors is responsible for the company's ESG strategy and performance monitoring, ensuring alignment with long-term value creation for shareholders [169]. - The ESG management team collects and analyzes ESG data, monitors performance, and prepares ESG reports, facilitating communication between the board and management [171]. - The company engages with stakeholders through various communication methods, including annual financial reports and conference calls, to assess the impact of its business activities on ESG factors [172]. - The company emphasizes the financial implications of ESG issues, assessing risks and opportunities related to sustainability measures [170]. - The company is committed to creating better social value through enhanced ESG measures and stakeholder collaboration [172]. - The importance matrix highlights key sustainability aspects such as noise management, energy consumption, and employee development [176]. - The company reported a significant reduction in greenhouse gas emissions from vehicle use, with nitrogen oxides decreasing from 272,846.69 grams in 2022 to 151,320.91 grams in 2023, a reduction of approximately 44.5% [195]. - Sulfur oxides emissions also decreased from 411.10 grams in 2022 to 365.69 grams in 2023, representing a decline of about 11% [195]. - The total amount of non-hazardous waste disposed of increased from 1,532.34 tons in 2022 to 1,906.94 tons in 2023, an increase of approximately 24.5% [200]. - The density of non-hazardous waste per construction project rose from 383.08 tons in 2022 to 635.65 tons in 2023, indicating a significant increase of about 66.1% [200]. - The company has implemented measures to minimize air quality impacts, including covering materials and using dust suppression techniques on construction sites [188]. - The company has not generated any hazardous waste during the reporting period, reflecting its operational nature [198]. - The company’s commitment to environmental protection is evident through its adherence to the Air Pollution Control Ordinance, ensuring fuel sulfur content does not exceed 0.005% [194]. Management and Operations - The management team has extensive experience in the construction industry, with over 30 years of combined expertise [106]. - The management team is responsible for overall management and business development, ensuring strategic growth [106]. - The company operates as a subcontractor in Hong Kong, providing foundation engineering services including excavation, lateral support works, and structural reinforcement engineering [167]. - The company emphasizes the importance of high-quality products and services to meet customer needs [102]. - The leadership team has a strong educational background in finance and management, enhancing decision-making capabilities [111].
俊裕地基(01757) - 2023 - 年度财报