Financial Performance - For the fiscal year ending April 30, 2022, the company reported revenue of approximately HKD 231.3 million, an increase of about HKD 33.7 million or 17.0% compared to approximately HKD 197.6 million for the previous year[17]. - The company experienced a loss attributable to owners of approximately HKD 7.0 million for the fiscal year, a decrease of about HKD 11.9 million from a profit of approximately HKD 4.9 million in the previous year[9]. - The increase in revenue was primarily driven by a rise in installation service revenue, which increased to approximately HKD 35.0 million[17]. - Installation services revenue increased by approximately 20.0% from about HKD 175.4 million for the year ended April 30, 2021, to about HKD 210.4 million for the year ended April 30, 2022[20]. - Maintenance services revenue decreased by approximately 6.1% from about HKD 22.1 million to about HKD 20.7 million during the same period[21]. - Total sales cost rose by approximately 21.7% from about HKD 170.1 million to about HKD 207.0 million, primarily due to increased subcontracting, direct labor, and material costs[23]. - Gross profit decreased by approximately 11.8% from about HKD 27.5 million to about HKD 24.2 million, with a gross profit margin dropping to 10.5%[25]. - Administrative expenses increased by approximately 82.5% from about HKD 15.2 million to about HKD 27.8 million, mainly due to higher professional fees and employee costs[29]. - The company reported a net loss attributable to owners of approximately HKD 7.0 million for the year ended April 30, 2022[34]. - The net proceeds from the share placement completed on April 22, 2022, amounted to approximately HKD 29.2 million[44]. - As of April 30, 2022, HKD 11.0 million of the net proceeds had been utilized, leaving HKD 18.2 million unutilized[47]. - The planned allocation of the net proceeds includes HKD 9.0 million (31%) for expanding engineering operations in Hong Kong, HKD 8.0 million (27%) for developing existing fire protection divisions, HKD 3.0 million (10%) for trading electromechanical products and accessories in Hong Kong and mainland China, and HKD 9.2 million (32%) for general working capital[45]. - As of April 30, 2022, the company's distributable reserves amounted to approximately HKD 67.7 million, including accumulated losses of about HKD 18.5 million and share premium of approximately HKD 86.2 million[192]. Business Strategy and Expansion - The company plans to continue expanding its business in the public sector and private buildings, focusing on advanced fire safety systems[10]. - Future strategies include streamlining installation processes and enhancing project planning, management, and execution standards[10]. - The company aims to seek strategic and financial partners to explore potential opportunities for expansion into overseas markets[10]. - The company has been active in the fire safety system installation, maintenance, and inspection sector for over 30 years[8]. - The ongoing COVID-19 pandemic has posed significant challenges, yet the company remains committed to identifying suitable business opportunities[14]. Corporate Governance - The company emphasizes its commitment to good corporate governance practices to enhance transparency and accountability to shareholders[67]. - The board of directors has confirmed compliance with the corporate governance code as of April 30, 2022, ensuring adherence to applicable rules and standards[67]. - The company has adopted the standard code for securities trading by directors, ensuring compliance with trading regulations[68]. - The board consists of six directors, including three executive directors and three independent non-executive directors, responsible for overseeing the company's business and affairs[69]. - The board held eight meetings during the fiscal year ending April 30, 2022, to review past financial and operational performance and discuss overall strategy and policies[71]. - The company has a policy that at least one-third of the directors must retire at the annual general meeting every three years, ensuring board refreshment[73]. - The board is tasked with setting the company's values and standards, ensuring necessary financial and human resources support to achieve corporate goals[75]. - The company has established a corporate governance function to review and monitor compliance with legal and regulatory requirements[76]. - The roles of Chairman and CEO are held separately by Mr. Liu Shih-Hao and Mr. Li Cheng-Kuan, ensuring a balance of power and authority[81]. - The Audit Committee held four meetings during the year ending April 30, 2022, to review financial reporting and risk management processes[85]. - The Compensation Committee conducted two meetings to review and propose compensation packages for directors and senior management[86]. - The company has appointed three independent non-executive directors, exceeding the requirement of one-third representation on the board[82]. - The Audit Committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[83]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their compliance with independence guidelines[82]. - The company is committed to providing independent opinions on business strategies and performance to protect the interests of all shareholders[82]. - The company has established a succession plan in place to identify suitable candidates for board vacancies as they arise[94]. Environmental, Social, and Governance (ESG) Initiatives - The company has identified key environmental, social, and governance (ESG) issues through stakeholder engagement and management assessments, focusing on sustainability strategies[122]. - The company has committed to improving data collection systems and expanding disclosures related to greenhouse gas emissions and climate change[124]. - The company’s environmental, social, and governance report is prepared in accordance with the guidelines set by the Hong Kong Stock Exchange, ensuring accuracy and reliability of the information presented[125]. - The company has implemented internal controls and formal review procedures to ensure the accuracy and reliability of its ESG report[126]. - The total greenhouse gas emissions from the Hong Kong office increased to 21,069 kg in 2022 from 19,308 kg in 2021, representing a growth of approximately 9.1%[135]. - The total energy consumption in the Hong Kong office rose to 33,339 kWh in 2022, compared to 30,647 kWh in 2021, marking an increase of about 8.8%[141]. - The per employee greenhouse gas emissions increased to 398 kg per employee in 2022 from 358 kg per employee in 2021, reflecting a rise of approximately 11.2%[135]. - The total paper usage decreased to 0.7236 tons in 2022 from 1.2849 tons in 2021, indicating a reduction of about 43.7%[137]. - The per employee paper usage also decreased to 18.2 kg in 2022 from 26.2 kg in 2021, showing a decline of approximately 30.5%[137]. - The company has implemented various waste reduction measures, including promoting a paperless environment and encouraging recycling among employees[138]. - The company’s environmental management system is certified under ISO 14001:2015, enhancing environmental awareness and pollution prevention efforts[130]. - The company aims to establish a paperless office by utilizing electronic platforms and communication channels[131]. - The company regularly monitors paper usage and has provided appropriate facilities to encourage waste sorting and recycling among employees[137]. Employee and Labor Relations - The total employee cost for the group was approximately HKD 44.7 million as of April 30, 2022, an increase from HKD 29.1 million in 2021[54]. - The group employed 56 staff members as of April 30, 2022, compared to 54 in 2021[54]. - The employee turnover rate decreased to 23% in 2022 from 28% in 2021, indicating improved employee retention[148]. - The gender distribution of employees as of April 30, 2022, was 71% male and 29% female, a shift from 76% male and 24% female in 2021[148]. - The age group distribution showed that 18% of employees were under 30 years old, while 68% were between 30 to 50 years old, and 14% were over 50 years old[148]. - The company has implemented a series of COVID-19 preventive measures, including mandatory temperature checks and hand sanitization for all employees entering the workplace[153]. - The company has maintained compliance with health and safety regulations, with no significant non-compliance issues reported for the years ending April 30, 2022, and 2021[152]. - The company has adopted ISO 45001:2018 standards for occupational health and safety, demonstrating a commitment to employee safety since August 27, 2010[151]. - The group maintains good relationships with employees, with no strikes or labor disputes reported during the year ended April 30, 2022[183]. - The group has established a defined contribution retirement benefit plan for eligible employees in Hong Kong, with contributions based on a percentage of employees' basic salaries[183]. - The group emphasizes employee training and development to enhance performance and meet client requirements[181]. Client and Supplier Relations - The group has registered trademarks in Hong Kong to protect its brand and intellectual property[164]. - As of April 30, 2022, approximately 37% of trade receivables from major clients have been settled[174]. - The group maintains a close relationship with major clients, with no significant disputes reported[176]. - Approximately 98% of trade payables to major suppliers have been settled as of the report date[178]. - The group has no major disputes with suppliers and subcontractors as of April 30, 2022[180]. - The top five customers accounted for approximately 67% of total revenue, with the largest customer contributing about 28%[188]. - The top five suppliers and subcontractors accounted for approximately 60% and 53% of total service costs, respectively[188]. - All suppliers of the company are located in Hong Kong, ensuring compliance with local quality standards[158]. - The company has not received any significant complaints regarding service quality or safety issues for the year ending April 30, 2022[159]. - There were no reported incidents of child labor or forced labor within the company during the years ending April 30, 2022, and 2021[157]. Risk Management - The group faces risks related to reliance on non-recurring revenue sources, supplier dependencies, and labor shortages[170]. - The company has established a comprehensive risk management and internal control system to manage risks associated with achieving its strategic objectives[102]. - The board believes that the risk management and internal control systems are effective and sufficient, having conducted an annual review of their effectiveness[104]. - The company has implemented policies and procedures to ensure the confidentiality of information and to manage potential conflicts of interest[104].
鸿盛昌资源(01850) - 2022 - 年度财报