Financial Performance - The revenue of Wecon Holdings Limited decreased by approximately HK$283.7 million or approximately 24.6%, from approximately HK$1,152.7 million for the year ended March 31, 2022, to approximately HK$869.0 million for the year ended March 31, 2023[7]. - The profit attributable to equity holders for the year ended March 31, 2023, was approximately HK$5.9 million, a decrease of approximately HK$8.3 million compared to the previous year[7]. - Revenue from building construction services decreased by approximately HK$426.0 million or approximately 43.2%, from approximately HK$986.7 million to approximately HK$560.7 million during the same period[32]. - Revenue from RMAA works services increased by approximately HK$142.3 million or approximately 85.7%, from approximately HK$166.0 million to approximately HK$308.3 million[33]. - The cost of sales decreased by approximately HK$269.0 million or approximately 24.5%, from approximately HK$1,099.0 million to approximately HK$830.0 million[38]. - The gross profit decreased by approximately HK$14.7 million or approximately 27.4%, from approximately HK$53.7 million to approximately HK$39.0 million[39]. - The gross profit margin for the Group was approximately 4.5% for the year ended March 31, 2023, compared to 4.7% for the previous year, representing a decrease of approximately 0.2 percentage points[39]. - The net profit of the group decreased by approximately HK$8.3 million or about 58.5%, from approximately HK$14.2 million to approximately HK$5.9 million[54]. - Other income and gains increased by approximately HK$5.9 million or about 80.8%, from approximately HK$7.3 million to approximately HK$13.2 million[46]. - Administrative and other operating expenses rose by approximately HK$1.1 million or about 2.5%, from approximately HK$44.3 million to approximately HK$45.4 million[47]. - Finance costs increased by approximately HK$51,000 or about 39.5%, from approximately HK$129,000 to approximately HK$180,000[52]. - Income tax decreased by approximately HK$1.6 million or about 69.6%, from approximately HK$2.3 million to approximately HK$0.7 million[53]. Contracts and Projects - The Group was awarded three sizeable contracts for redevelopment projects from new customers with an aggregate contract sum of approximately HK$1.5 billion during the year[8]. - An additional sizeable contract with a contract sum of approximately HK$500 million was awarded to the Group after March 31, 2023[8]. - As of March 31, 2023, the Group had 11 major projects on hand with an awarded contract sum of HK$10.0 million or above[21]. - The Group completed five major projects with an awarded contract sum of HK$10.0 million or above during the year ended March 31, 2023[21]. Strategic Plans and Industry Outlook - The Group plans to invest in building construction-related services to enhance capabilities and provide synergies to existing business[14]. - The management remains prudently optimistic about the prospects of the construction industry in Hong Kong[8]. - The Group aims to diversify its customer base and improve competitiveness through timely project completion and cost-effective measures[8]. - Building information modeling services are seen as a differentiator for the Group, providing creative technical solutions to customers[14]. Governance and Board Structure - The Board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[100]. - Mr. Tsang Ka Yip serves as both Chairman and CEO, a decision deemed beneficial for the Group and its shareholders[95]. - Independent non-executive directors (INEDs) represent at least one-third of the Board, ensuring sufficient independence to safeguard shareholder interests[102]. - The Board's key responsibilities include formulating overall strategies and supervising management performance[99]. - The Company believes all INEDs meet the independence guidelines set out in the Listing Rules[103]. - The Board aims to appoint at least three independent non-executive Directors, ensuring that at least one-third of the Board members are independent[114]. - The Nomination Committee is mandated to assess the independence of all independent non-executive Directors annually, adhering to the independence criteria set out in the Listing Rules[117]. Diversity and Inclusion - The Board Diversity Policy aims to enhance performance quality through diversity, considering factors such as gender, age, cultural background, and professional experience[127]. - As of 31 March 2023, the Board had no female members, and plans to appoint at least one female Board member by 31 December 2024 to meet gender diversity requirements[134]. - The Board aspires to achieve gender parity and ensure a balance of Directors with experience in the Group's core markets and diverse ethnic backgrounds[135]. - The Group maintains a commitment to fair employment practices, prohibiting discrimination based on gender, religion, race, disability, or age[141]. - The Board recognizes the need for diversity and plans to maintain a balance of gender diversity in the workforce in the foreseeable future[143]. Financial Management and Remuneration - The total staff costs (excluding Directors' remuneration) were approximately HK$93.5 million and HK$92.9 million for the years ended 31 March 2023 and 2022, respectively[59]. - The Group's remuneration policy aims to provide competitive but not excessive remuneration packages to attract and retain quality staff[175]. - Directors' remuneration includes fixed salary or service fee and variable components, benchmarked against comparable companies[176]. - The remuneration of Directors is reviewed annually and subject to Shareholders' approval[176]. - The total remuneration paid to the external auditor, Ernst & Young, for audit services was HK$1,070,000, while non-audit services amounted to HK$210,000, bringing the total to HK$1,280,000[185]. Shareholder Communication and Meetings - The upcoming annual general meeting is scheduled for August 18, 2023, providing an opportunity for shareholder communication[197]. - There are no material uncertainties that may cast significant doubt on the company's ability to continue as a going concern[190]. - The board may call an extraordinary general meeting if shareholders holding at least one-tenth of the voting rights request it[198]. - Shareholders holding at least 10% of voting rights can request a special general meeting[200]. - The board must convene the meeting within two months of the request[200]. - If the board fails to convene within 21 days, the requesting shareholders can call the meeting themselves[200]. - Reasonable expenses incurred due to the board's failure to convene will be reimbursed by the company[200].
伟工控股(01793) - 2023 - 年度财报