Financial Performance - Total revenue increased by HKD 84.7 million or 38.2% to approximately HKD 306.6 million for the year ended March 31, 2022, compared to approximately HKD 221.9 million for the previous year[8]. - The group recorded a loss attributable to shareholders of approximately HKD 20.5 million, a decrease of HKD 21.5 million from a profit of approximately HKD 1.0 million in the previous year, primarily due to provisions for expected credit losses related to legal disputes[8]. - Revenue from mainland China operations was approximately HKD 154.2 million, demonstrating the effectiveness of the board's strategic decisions despite the pandemic's impact[8]. - The group's revenue increased by approximately HKD 84.7 million or 38.2% to about HKD 306.6 million for the year ended March 31, 2022, compared to HKD 221.9 million for the year ended March 31, 2021[23]. - Direct costs rose by approximately HKD 88.4 million or 42.5% to about HKD 296.4 million for the year ended March 31, 2022, from approximately HKD 208.0 million for the previous year[25]. - Gross profit decreased by about 26.6% to approximately HKD 10.2 million for the year ended March 31, 2022, down from about HKD 13.9 million for the previous year[26]. - Impairment losses under the expected credit loss model amounted to approximately HKD 8.8 million for the year ended March 31, 2022, compared to a reversal of impairment losses of HKD 2.0 million for the previous year[27]. - Administrative and other operating expenses increased by approximately 50.0% to about HKD 22.5 million for the year ended March 31, 2022, from approximately HKD 15.0 million for the previous year[28]. - The group reported a loss of approximately HKD 21.0 million for the year ended March 31, 2022, compared to a profit of approximately HKD 1.0 million for the year ended March 31, 2021[31]. - The group's financing costs decreased from approximately HKD 1.0 million for the year ended March 31, 2021, to approximately HKD 0.4 million for the year ended March 31, 2022, a reduction of about 60%[29]. - The group's income tax expense changed from approximately HKD 0.8 million for the year ended March 31, 2021, to a tax credit of approximately HKD 0.7 million for the year ended March 31, 2022[30]. Business Strategy and Operations - The group plans to continue expanding its mainland China business and diversify into more industry sectors to mitigate risks associated with concentrated operations[10]. - The government set a 5.5% annual economic growth target, reinforcing the board's commitment to invest more resources in the mainland market[10]. - The group will adopt a more cautious approach to its existing business in Hong Kong due to uncertainties from macroeconomic changes and the local pandemic situation[10]. - The board will conduct a thorough review of current operations and explore opportunities in other industries to expand revenue sources and counteract economic downturns[12]. - The group aims to actively seek business opportunities in other industries and develop long-term business plans and strategies to capitalize on market recovery[14]. - The group has maintained strong relationships with major clients, with most relationships lasting between one to ten years[20]. - The group has not encountered any significant difficulties with suppliers or subcontractors during the year[21]. - The group has complied with applicable labor laws and regulations, ensuring good relations with employees without any strikes or labor disputes during the year[22]. Assets and Liabilities - As of March 31, 2022, the group's total assets were approximately HKD 253.8 million, up from approximately HKD 149.4 million in 2021[32]. - The group's interest-bearing borrowings and lease liabilities totaled approximately HKD 16.3 million as of March 31, 2022, down from approximately HKD 25.1 million in 2021[32]. - The group's current ratio was approximately 2.3 times as of March 31, 2022, compared to 4.6 times in 2021[32]. - The group's cash and bank balances were approximately HKD 139.5 million as of March 31, 2022, compared to approximately HKD 30.9 million in 2021[34]. - The group's debt-to-asset ratio decreased to approximately 11.2% as of March 31, 2022, from approximately 21.3% in 2021[36]. - As of March 31, 2022, the group had no significant foreign exchange risk as all revenue-generating operations and borrowings were conducted in HKD and RMB[40]. Investments and Projects - As of March 31, 2022, the group has provided cash flow of approximately HKD 15.5 million for the initial stages of fourteen new projects, with a total contract value of not less than HKD 37.0 million[52]. - The group has incurred approximately HKD 2.6 million in recruiting a project manager and two site supervisors to establish a public housing improvement and maintenance team[54]. - The group has spent about HKD 1.4 million to recruit two designers and one project manager for the development of its interior design and decoration business[54]. - Approximately HKD 6.0 million has been spent on recruiting additional personnel, including a site foreman and two project assistants, to enhance project execution capabilities[57]. - The group has allocated around HKD 3.0 million for the renovation of its new office to accommodate staff expansion and prepare for new opportunities in the residential sector[57]. - The group has utilized approximately HKD 2.5 million for the construction of an interior design and decoration simulation unit in its new office, which will be open to the public[54]. - The group plans to bid for projects exceeding HKD 40.0 million in total contract value for decoration, renovation, and extension works[52]. - The group has participated in nine interior design competitions to enhance its market reputation and demonstrate its capabilities[54]. - The group has completed all projects funded by the cash flow provided for new projects, ensuring that all funds have been utilized appropriately[52]. Shareholder and Dividend Information - The board did not recommend the payment of a final dividend for the year ended March 31, 2022, consistent with the previous year[75]. - The company reported a total distributable reserve of approximately HKD 48.4 million as of March 31, 2022[108]. - The company has adopted a dividend policy aimed at providing shareholders with a share of the group's profits, subject to certain conditions[93]. - The company’s board will consider various factors, including financial performance and operational needs, when recommending dividends[93]. Corporate Governance - The company has established three board committees: the remuneration committee, nomination committee, and audit committee, each with clear written terms of reference[179]. - The company has adopted a board diversity policy to enhance performance through diverse board composition[150]. - The independent auditor for the group was appointed on April 27, 2020, with no changes in the past three years[139]. - The company emphasizes the importance of ongoing professional development for directors to ensure informed contributions to the board[178]. - The company has purchased liability insurance for its directors and senior management[146]. - The company’s consolidated financial statements for the year ending March 31, 2022, were reviewed by the audit committee and deemed compliant with applicable accounting standards and listing rules[187]. - The board of directors is responsible for overseeing the company's internal control, financial monitoring, and risk management systems, with annual reviews conducted[198]. - The company has established risk management procedures that include risk identification, assessment, and mitigation strategies[199].
标准发展集团(01867) - 2022 - 年度财报