Financial Performance - Total revenue for the year ended March 31, 2022, was approximately HKD 275.1 million, an increase of about 25.8% compared to the previous year[45] - Profit attributable to owners of the company was approximately HKD 10.1 million for the year ended March 31, 2022[45] - Revenue increased from approximately HKD 218.7 million for the year ended March 31, 2021, to approximately HKD 275.1 million for the year ended March 31, 2022, representing a growth of about 25.8%[53] - Gross profit improved from a loss of approximately HKD 30.6 million to a profit of approximately HKD 22.9 million, a growth of about 174.7%[55] - The total comprehensive income increased from a loss of approximately HKD 39.9 million to a profit of approximately HKD 10.1 million[61] - Direct costs rose from approximately HKD 249.4 million to approximately HKD 252.3 million, an increase of about 1.2%[54] - The current ratio decreased from 4.5 times to 4.1 times[63] - The return on total assets improved from approximately -14.1% to approximately 4.1%[70] - The return on equity increased from approximately -18.1% to approximately 5.3%[71] - The company’s available distributable reserves as of March 31, 2022, were approximately HKD 110.1 million, compared to HKD 110.5 million in 2021[150] Business Strategy - The company is focusing on private sector projects, having shifted its attention away from public sector projects during the fiscal year[50] - The management team emphasizes effective cost control measures to seek larger project opportunities and enhance profitability[50] - The company plans to actively participate in large project tenders and strengthen cost control measures to generate more revenue and reduce direct costs[50] - The company aims to reduce reliance on major clients by undertaking more large-scale projects with other clients, thereby mitigating customer concentration risk[183] - The company is focused on strategic investments and partnerships to support its growth objectives in the competitive market landscape[104] Client and Supplier Relationships - The company has maintained long-term relationships with key clients, suppliers, and subcontractors, which is expected to support its competitive position in the market[45] - The company reported that its major clients accounted for approximately 40.7% and 66.0% of total revenue for the years ending March 31, 2022, and March 31, 2021, respectively[136] - The top five clients collectively contributed about 95.1% and 98.2% of total revenue for the same periods[136] - The largest supplier accounted for approximately 17.0% of total purchases, while the top five suppliers represented about 55.2% of total purchases for the year ending March 31, 2022[179] - The largest customer contributed approximately 40.7% of total revenue, with the top five customers accounting for about 95.1% of total revenue for the year ending March 31, 2022[179] Management and Governance - The company has appointed Mr. Yang as an independent non-executive director on April 4, 2019, who also serves as the chairman of the audit and remuneration committees[103] - Mr. Zhang, appointed as an independent non-executive director on April 4, 2019, has over 16 years of experience in accounting and finance[108] - Mr. Chan, appointed as an independent non-executive director on January 31, 2020, has over 22 years of experience in credit, financing, and taxation[109] - The company has a strategic focus on expanding its market presence and enhancing its financial management capabilities through experienced board members[104] - The board includes members with extensive backgrounds in finance, accounting, and project management, contributing to the company's strategic direction[106] - The company emphasizes the importance of corporate governance through the establishment of various committees, including audit and remuneration[103] - The independent directors bring diverse expertise from various sectors, enhancing the company's decision-making processes[108] - The board's composition reflects a commitment to maintaining high standards of corporate governance and accountability[106] Operational Challenges - The management remains cautious about the construction industry outlook due to ongoing market competition and labor shortages[45] - The company anticipates needing more time to utilize the proceeds for increasing manpower due to challenges in finding suitable candidates[87] - The actual time and costs of project completion may significantly differ from estimates, potentially impacting financial performance[141] - The company has identified significant risks related to client concentration, which may adversely affect its business and financial performance[136] Employee and Compensation - The total employee costs for the year ended March 31, 2022, amounted to approximately HKD 28.2 million, an increase from HKD 27.2 million in the previous year[90] - The company has established a comprehensive compensation package for employees, including salaries, discretionary bonuses, and other cash benefits to attract and retain skilled workers[180] - The company has maintained competitive compensation and benefits to address the shortage of skilled labor in the local construction industry[180] - The company has a robust annual review system for employee performance, which informs decisions on salary increases, bonuses, and promotions[180] Financial Position - Cash and cash equivalents totaled approximately HKD 125.8 million as of March 31, 2022, compared to approximately HKD 183.5 million as of March 31, 2021[73] - As of March 31, 2022, the company's debt-to-equity ratio remains at zero, consistent with the previous year[78] - The company obtained a performance bond of approximately HKD 24.2 million from a bank as of March 31, 2022, compared to zero in the previous year[79] - The company has not issued any debt securities during the year ended March 31, 2022[145] - The company has not engaged in any borrowing as of March 31, 2022[199] Corporate Actions - The company does not recommend a final dividend for the year ended March 31, 2022, consistent with the previous year[91] - The company has not made any significant investments or acquisitions as of March 31, 2022[82] - The company has not incurred any significant costs related to environmental compliance as of March 31, 2022[186] - There were no significant investments, acquisitions, or disposals of subsidiaries and associates during the fiscal year ending March 31, 2022[194] - The company has not granted any stock options under its stock option plan since its adoption on April 4, 2019[198] - The total number of shares available for issuance under the stock option plan is 62,000,000, representing 10% of the company's total issued share capital[198] - The company has maintained the minimum public float required by listing rules as of March 31, 2022[190] Miscellaneous - The company was incorporated in the Cayman Islands on April 24, 2018, and completed its restructuring on June 19, 2018, in preparation for its listing[125] - The registered office of the company is located in Hong Kong, with its main business operations situated at Asia Trade Centre, 79 Lei Muk Road, Kwai Chung, New Territories, Hong Kong[126] - The company received financial support from a controlling shareholder, which included a personal guarantee from the executive director, ensuring compliance with regulatory requirements[173][174] - The company has not engaged in any related party transactions that required disclosure under the listing rules[172] - The company’s financial support from the controlling shareholder was deemed to be on normal commercial terms, aligning with the interests of shareholders[177]
B & D STRATEGIC(01780) - 2022 - 年度财报