Financial Performance - The company reported revenue of HKD 591.9 million for the year ended March 31, 2022, compared to HKD 210.66 million in the previous year, representing an increase of approximately 180.5%[7]. - The net loss attributable to the owners of the company was HKD 19.39 million for the year ended March 31, 2022, compared to a net loss of HKD 12.31 million in the previous year, indicating an increase in loss of approximately 57.5%[7]. - The basic and diluted loss per share was HKD 2.42 cents for the year ended March 31, 2022, compared to HKD 1.54 cents in the previous year[7]. - The company's revenue for the year ended March 31, 2022, was approximately HKD 591.9 million, an increase of about HKD 381.2 million or 180.9% compared to HKD 210.7 million for the year ended March 31, 2021[16]. - The increase in total revenue was primarily due to a rise in revenue from superstructure construction projects by approximately HKD 379.5 million and from renovation, maintenance, and alteration projects by approximately HKD 1.7 million[21]. - The gross profit for the year ended March 31, 2022, was approximately HKD 26.8 million, an increase of about HKD 23.7 million or approximately 764.5% compared to HKD 3.1 million for the year ended March 31, 2021[22]. - The overall gross profit margin increased to approximately 4.5% for the year ended March 31, 2022, compared to approximately 1.5% for the year ended March 31, 2021[22]. - Other income, gains, and losses for the year ended March 31, 2022, amounted to approximately HKD 0.3 million, a decrease of about HKD 3.1 million or 91.2% compared to approximately HKD 3.4 million for the year ended March 31, 2021[23]. - Administrative and other expenses for the year ended March 31, 2022, were approximately HKD 25.9 million, an increase of about HKD 5.3 million or 25.7% compared to approximately HKD 20.6 million for the year ended March 31, 2021[25]. - Loss attributable to owners of the company increased by approximately HKD 7.1 million to about HKD 19.4 million for the year ended March 31, 2022, compared to approximately HKD 12.3 million for the year ended March 31, 2021[26]. Business Operations and Strategy - The company has successfully secured multiple large-scale building construction contracts, indicating a cautious optimism for maintaining competitiveness in the construction industry[11]. - The company anticipates increased pressure on profitability and profit margins due to intensified competition in the industry as the economic situation improves[11]. - The company is actively exploring business expansion opportunities and the feasibility of extending its operations[11]. - The company is exploring the integration of more environmental technology elements into the construction industry, focusing on the development and application of green building materials[20]. - The Hong Kong Environmental Protection Department launched a HKD 2 billion "Electric Vehicle Charging Subsidy Scheme," expected to cover approximately 60,000 private parking spaces over three years, which may lead to more construction projects available for tender[20]. - The company successfully secured a construction contract related to the subsidy scheme as a subcontractor during the reporting period[20]. - The board remains cautiously optimistic about the future, anticipating a gradual recovery of the Hong Kong economy and construction industry as the pandemic situation improves[20]. - The company is actively seeking business expansion opportunities to diversify its revenue sources and enhance long-term growth, particularly in the environmental sector[20]. - The company will continue to monitor the impact of the pandemic on its construction and renovation projects and other emerging construction opportunities[20]. Cash Flow and Financial Position - As of March 31, 2022, the total cash and cash equivalents amounted to approximately HKD 87.2 million, a slight decrease from approximately HKD 89.0 million as of March 31, 2021[27]. - The current ratio decreased from approximately 3.2 as of March 31, 2021, to about 1.71 as of March 31, 2022, primarily due to an increase in trade payables and accrued contract liabilities[27]. - Capital expenditures for the year ended March 31, 2022, totaled approximately HKD 7.5 million, a significant increase from approximately HKD 0.2 million for the year ended March 31, 2021[29]. - The total salary and related costs for the year ended March 31, 2022, were approximately HKD 37.9 million, compared to approximately HKD 30.0 million for the year ended March 31, 2021[36]. - The net proceeds from the IPO amounted to approximately HKD 78.5 million, which have been fully utilized as of March 31, 2022[35]. Governance and Management - The company appointed Mr. Tang Zhi Jian as an executive director on January 24, 2022, who has over 30 years of experience in the construction industry[40]. - Mr. Hou Ying Cheng has been an independent non-executive director since July 24, 2018, and is a member of the audit and nomination committees, providing independent judgment on strategy and performance[41]. - Mr. Zhang Jue, appointed as an independent non-executive director on January 14, 2022, has over 13 years of experience in investment and financial management[42]. - Mr. Wen Yao Xiang, independent non-executive director since July 24, 2018, has over 26 years of experience in sales and marketing of construction materials[42]. - The company’s contract manager, Mr. Wen Shi Xue, has over 41 years of experience in the construction industry, managing overall bidding and contract control[44]. - The company is focused on expanding its business network and exploring new development opportunities under the leadership of its experienced management team[40]. - The independent directors are responsible for ensuring compliance and providing independent assessments of the company's strategies and policies[41][42]. - The company has a strong emphasis on maintaining business growth through regional and local expansion plans in key market segments[43]. - The management team has extensive experience in various construction activities, ensuring effective project execution and compliance with industry standards[44]. Risk Management - The group has faced several risks, including reliance on winning non-recurring projects and potential cost overruns due to inaccurate project cost estimates[53]. - The group has experienced a competitive market environment, which may affect operations if the Hong Kong property market deteriorates further[53]. - The group has a financial risk management policy in place, with performance analysis based on key financial performance indicators[50]. - The board is responsible for evaluating risks associated with achieving strategic goals and ensuring effective risk management and internal control systems are in place[126]. - An external independent consulting firm was engaged to review the effectiveness of the company's risk management and internal control systems during the fiscal year ending March 31, 2022[126]. - The company has established a risk management and internal control system that includes a risk register to track and record identified risks, assess and evaluate risks, and develop and update response measures[128]. - The risk assessment process involves capturing and identifying inherent risks that affect the achievement of objectives, with risks categorized into low (L), medium (M), and high (H) levels based on a risk matrix[129]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report outlines the group's policies, measures, and performance regarding key ESG issues during the reporting period from April 1, 2021, to March 31, 2022[142]. - The report scope and boundaries remain consistent with the previous year's ESG report, focusing on core and significant business operations in Hong Kong[143]. - The company is committed to improving internal data collection processes and gradually expanding the scope of disclosures related to environmental and social key performance indicators[143]. - The company has implemented a comprehensive management system that includes ISO 9001, ISO 14001, and ISO 45001 standards to monitor and manage ESG-related risks[147]. - The company aims to continuously reduce emissions in accordance with government regulations across different countries and regions, with clear short-term and long-term sustainability goals[148]. - Stakeholder engagement is considered a solid foundation for the company's sustainable development and success, enhancing risk identification capabilities[150]. - The company has committed to integrating ESG factors into its long-term business strategy and operational decision-making processes[148]. - The report adheres to the "comply or explain" provisions and includes selective disclosures as recommended by ESG guidelines[145]. - The company emphasizes the importance of internal and external assessments to identify key ESG reporting issues[152]. - The board regularly reviews the effectiveness of management and adjusts action plans based on the company's ESG performance[148]. Employee and Labor Practices - As of March 31, 2022, the total number of employees is 72, an increase from 66 in the previous year[185]. - The employee turnover rate for the year is 29%, up from 17% in the previous year[185]. - The company is committed to complying with all relevant laws and regulations regarding employment and labor practices[179]. - The company provides various benefits to employees, including medical insurance and a mandatory provident fund[184]. - The company has adopted an occupational health and safety management system based on ISO 45001:2018 standards[186]. - The workforce consists of 48 males and 24 females, with a notable increase in female employees from 18 to 24[185]. - The company emphasizes the importance of employee development and conducts regular performance assessments[181]. - The company has established emergency plans for extreme weather conditions to ensure employee safety[177]. - The company conducted safety training for 21% of its employees, totaling 683 hours of training during the reporting period[195]. - The average training hours per employee was 9.49 hours, with male employees receiving an average of 11.09 hours and female employees 6.27 hours[197]. - The company reported zero fatalities during the reporting period, maintaining a death rate of 0.00 per 100,000 working hours[193]. - The number of lost workdays due to injuries was 399, resulting in a loss rate of 29.23 per 100,000 working hours[193]. - The company has established a safety management committee to oversee the implementation of safety policies and procedures[188]. - Monthly recognition programs were held to honor contractors with outstanding safety performance, enhancing safety awareness among employees[188]. - The company plans to continue reviewing and improving its occupational health and safety management systems to enhance safety awareness among employees and subcontractors[193]. Supply Chain Management - The group has 237 suppliers and subcontractors in 2021/2022, an increase from 187 in 2020/2021, all located in Hong Kong[199]. - The group strictly prohibits child labor and forced labor, with no violations reported during the reporting period[198]. - Procurement decisions are based on price, quality, delivery capability, service reputation, and integrity, ensuring ethical practices[200]. - The group evaluates suppliers and subcontractors based on their environmental and social performance to manage supply chain risks[200]. - The approved supplier list is regularly reviewed and updated based on performance assessments[200]. - Subcontractors must be legally employable individuals, with measures in place to prevent illegal labor on construction sites[198]. - The group has implemented strict identity verification processes for workers on construction sites[198]. - The group maintains constructive relationships with supply chain partners, focusing on long-term collaboration[199]. - The group’s procurement policy emphasizes objective and fair practices in sourcing materials and services[200]. - The group has not encountered any cases related to child labor, forced labor, or illegal immigrant workers during the reporting period[198].
晋景新能(01783) - 2022 - 年度财报