Financial Performance - The Group's revenue decreased by 15.4% from HK$717.7 million in the year ended March 31, 2022, to HK$607.2 million in the year ended March 31, 2023[24]. - Consolidated profit attributable to owners of the Company for the year was HK$12.1 million, a decrease of 50.8% compared to HK$24.6 million last year[25]. - The gross profit margin fell from 7.6% last year to 6.2% this year due to additional costs incurred to expedite installation processes at construction sites affected by COVID-19[25]. - Basic and diluted earnings per share were HK$0.03, representing a 50.0% decrease from HK$0.06 last year[26]. - The net asset value of the Group as of March 31, 2023, was HK$532.0 million, a decrease of 1.4% from HK$539.3 million as of March 31, 2022[27]. - Net asset value per share as of March 31, 2023, was HK$1.27, down from HK$1.29 the previous year[27]. - The total dividend declared for the year is HK$2.5 cents per share, down from HK$3.7 cents per share in the previous year[31]. - The decrease in revenue was primarily attributed to delays in work programmes of certain projects[24]. - The financial results reflect the challenges faced due to the COVID-19 pandemic and its impact on project timelines[25]. Contracts and Projects - Major revenue-generating projects included residential developments at Tuen Mun Siu Hong, Tai Po Kau, Kai Tak, and Lung Cheung Road[24]. - The Group's outstanding contracts amounted to HK$944.6 million as of March 31, 2023, with stable revenue expected in the coming year[44]. - The total outstanding amount of contracts on hand as of March 31, 2023, was HK$944.6 million[62]. - The Group's unfinished contracts have decreased due to fierce competition in the industry, prompting a conservative bidding strategy[34]. Economic Outlook - Hong Kong's real GDP decreased by 3.5% in 2022 due to the COVID-19 pandemic and external economic conditions[32]. - The economic outlook for Hong Kong is expected to improve as the pandemic eases, boosting private consumption and labor market conditions[39]. Operational Strategy - The Group aims to control costs and monitor project quality to maintain customer satisfaction and secure new project contracts[41]. - Construction material prices have stabilized, contributing to improved business operations in the second half of the financial year[33]. - The Group will continue to focus on providing quality products and services to establish a solid foundation for future development[44]. Liquidity and Financial Position - The Group had total cash and bank balances of HK$77.6 million as of March 31, 2023, accounting for 18.2% of current assets[76]. - The Group had access to banking facilities totaling HK$430.0 million, with HK$145.6 million utilized for performance bonds as of March 31, 2023[75]. - The Group's net current assets as of March 31, 2023, were HK$353.9 million, down from HK$365.1 million as of March 31, 2022, with a current ratio of 5.8 times[80]. - The Group's liquidity position is expected to remain healthy in the coming year, with sufficient financial resources to meet obligations and future development requirements[81]. Corporate Governance - The Group has maintained compliance with all provisions of the Corporate Governance Code during the year ended March 31, 2023, except for one deviation regarding attendance at the annual general meeting[117]. - The Board of Directors met the requirement of having at least three independent non-executive directors, representing at least one-third of the Board[131]. - The Group emphasizes the importance of good corporate governance practices to protect shareholder interests[116]. - The Board composition includes a balanced mix of executive and non-executive directors to ensure independence in decision-making[126]. - The Company has received written annual confirmation of independence from each independent non-executive director, confirming their compliance with independence requirements[136]. - The Nomination Committee was established on February 22, 2019, to oversee the appointment and re-election of directors[150]. - The Company is committed to providing equal opportunities in employment, training, and career development for its employees[149]. Board and Management Practices - The Chairman and Managing Director roles are separated, with the Chairman focusing on overall strategic planning and the Managing Director handling day-to-day operations[163][165]. - All directors participated in continuous professional development during the year ended March 31, 2023, to enhance their knowledge and skills[173]. - The Company ensures that directors are kept informed of regulatory developments and changes relevant to their roles[169]. - The Company held four regular Board meetings during the year ended March 31, 2023, focusing on approving the Group's forecast and budget, interim and final results, and reviewing risk management and internal control systems[188]. - The Audit Committee conducted three meetings during the year ended March 31, 2023, reviewing the Company's annual results and making recommendations regarding the external auditor's appointment and remuneration[194]. Audit and Risk Management - The Audit Committee is responsible for reviewing the Group's operating, financial, and accounting policies and practices[195]. - The Company is committed to maintaining effective risk management and internal control systems, as reported to the board[196]. - The Audit Committee reviews the external auditor's performance annually, considering factors such as independence, audit quality, and effectiveness of the audit process[197]. - The Company has adopted the Model Code as a guideline for securities transactions by directors and employees[176].
美亨实业(01897) - 2023 - 年度财报