Financial Performance - The Group's revenue for the year ended March 31, 2022, amounted to HK$717.7 million, representing an increase of 33.9% compared to HK$536.0 million for the previous year[28]. - The consolidated profit attributable to owners of the Company for the year ended March 31, 2022, was HK$24.6 million, a decrease of 36.8% from HK$38.9 million last year[29]. - The gross profit margin decreased from 14.0% last year to 7.6% this year due to additional costs incurred to expedite installation processes affected by COVID-19[29]. - Basic and diluted earnings per share for the year were HK$0.06, representing a decrease of 33.3% compared to HK$0.09 last year[33]. - The net asset value of the Group as of March 31, 2022, was HK$539.3 million, a decrease of 1.2% from HK$545.9 million the previous year[35]. - The total dividend declared for the year was HK$3.7 cents per share, down from HK$4.2 cents per share in the previous year[37]. - The total cash and bank balances amounted to HK$86.6 million, representing 19.9% of current assets, down from HK$236.0 million or 46.6% of current assets a year earlier[82]. - The Group experienced a net cash outflow of HK$43.1 million in operating activities, HK$72.5 million in investing activities, and HK$34.0 million in financing activities for the year[85]. - The current ratio as of March 31, 2022, was 6.2 times, compared to 7.2 times as of March 31, 2021[85]. Revenue Drivers - Revenue growth was primarily driven by residential development projects at various locations including Kai Tak and Lohas Park[28]. - Major completed projects included residential developments at N.K.I.L. 6564, 6563, and 6565 in Kai Tak, contributing to revenue growth[72]. - The Group has sufficient outstanding contracts amounting to HK$1,078.6 million as of March 31, 2022, expected to support revenue over the next two years[50]. - The total outstanding amount of contracts on hand as of March 31, 2022, was HK$1,078.6 million[69]. Government and Economic Impact - The decrease in subsidies from the HKSAR Government's Employment Support Scheme amounted to HK$6.4 million during the current year[29]. - The HKSAR Government revised down the real GDP growth forecast for 2022 to 1%-2% from the previous 2%-3.5% due to various uncertainties[44]. - The impact of the COVID-19 pandemic has significantly affected construction progress and productivity, with the unemployment rate rising to 5.4%[41]. - The construction market is expected to remain prosperous, with the Group's market share anticipated to increase in the future[46]. Corporate Governance - The Company complied with all provisions of the Corporate Governance Code during the reporting period, with one noted deviation regarding attendance at the annual general meeting[126]. - The Board composition includes at least three independent non-executive directors, representing at least one-third of the Board, ensuring independence in decision making[141]. - All independent non-executive directors have confirmed their independence in accordance with Rule 3.13 of the Listing Rules, and the Company has assessed their independence[148]. - The Company adopted a Board Diversity Policy on 22 February 2019, considering various aspects such as gender, age, and professional experience to achieve diversity[152]. - The Nomination Committee has reviewed the board diversity as of 31 March 2022 and found it characterized by diversity in cultural and educational background, professional experience, skills, knowledge, and length of service[153]. - The Company has established a Nomination Committee to handle matters related to the appointment and re-election of directors, with a policy adopted on 22 February 2019[154]. - The Board is composed of a balanced mix of executive and non-executive directors, ensuring effective leadership and decision-making[138]. Director Development and Responsibilities - Directors are encouraged to participate in continuous professional development to keep their knowledge and skills updated[185]. - The Company ensures that directors receive timely and reliable information for effective decision-making[180]. - Newly appointed directors receive necessary induction and information to understand the Company's operations and their responsibilities under the Listing Rules[186]. - The training areas included updates on corporate governance, laws, rules, regulations, accounting, financial management, and other professional skills[194]. - The company secretary, Mr. Kwok Wing Fai, plays a crucial role in ensuring good information flow within the Board and compliance with corporate governance developments[200]. Joint Ventures and Investments - The Group entered into a joint venture agreement with a capital commitment of HK$344.8 million, with each party contributing HK$172.4 million[99]. - The acquisition of a property located at No. 55 Nga Tsin Wai Road, Kowloon, was completed for a purchase price of HK$195.0 million in January 2022[99]. - The Group had access to banking facilities totaling HK$430.0 million, of which HK$156.1 million was utilized for performance bonds as of March 31, 2022[79]. - The Group's proportionate share of the bank loan balance for the joint venture was HK$64.1 million as of March 31, 2022[119]. - The Group did not have any plans for material investments or capital assets in the coming year, aside from the commitment to provide shareholder loans[109].
美亨实业(01897) - 2022 - 年度财报