Financial Performance - The company recorded revenue of approximately HKD 2,280.2 million for the fiscal year ending March 31, 2023, a decrease of about 23.5% compared to HKD 2,979.0 million for the previous year[10]. - Net profit for the year was approximately HKD 30.6 million, down approximately 76.4% from HKD 129.6 million in the prior year[10]. - Gross profit was approximately HKD 126.4 million, reflecting a decline of about 55.8% from HKD 286.3 million in the previous year[10]. - The group's revenue for the year ended March 31, 2023, was approximately HKD 2,280.2 million, a decrease of 23.5% compared to HKD 2,979.0 million in the previous year[24]. - The overall gross profit margin declined from approximately 9.6% to 5.5%, with gross profit decreasing by about HKD 159.9 million or 55.8% to approximately HKD 126.4 million[26]. - The net profit attributable to equity holders for the year ended March 31, 2023, was approximately HKD 30.6 million, a decrease of 76.4% from HKD 129.6 million in the previous year[30]. - Service costs for the year were approximately HKD 2,153.8 million, accounting for about 94.5% of the group's revenue, an increase of 4.1% compared to the previous year[25]. - Administrative expenses decreased by approximately HKD 35.8 million or 28.1% to about HKD 91.7 million, primarily due to reduced personnel costs[28]. - The total capital expenditure for the year ended March 31, 2023, was approximately HKD 1.6 million, significantly lower than HKD 26.6 million for the year ended March 31, 2022, primarily due to vehicle purchases for environmental hygiene services[40]. - The company proposed a final dividend of HKD 1.22 per share for the year ended March 31, 2023, compared to HKD 5.00 per share in 2022[180]. Business Development and Strategy - The company successfully secured a major cleaning service contract for a landmark shopping mall in East Kowloon, indicating growth in the commercial sector despite intense competition in the government sector[12]. - The company aims to actively seek suitable environmental hygiene enterprises in mainland China for potential acquisitions to facilitate rapid market entry[12]. - A new subsidiary, Johnson Professional Services Limited, was established to provide pest management services, creating cross-selling opportunities with existing cleaning services[13]. - Future strategies include expanding operations from Hong Kong to mainland China, particularly in the Greater Bay Area, to become a leading environmental hygiene service provider[16]. - The company will focus on optimizing its overall business structure through strategic acquisitions and resource allocation to strengthen its core cleaning business[16]. - The group aims to accelerate overall business development through strategic acquisitions and deepen its market position in Hong Kong and the Greater Bay Area[24]. - The company is exploring potential acquisitions to further strengthen its market position, with a focus on technology firms[62]. - Strategic partnerships have been established with three key players in the industry to enhance service offerings[62]. Corporate Governance - The company reported a commitment to good corporate governance standards, which are essential for protecting shareholder interests and enhancing corporate value[90]. - The board believes that the company has complied with all applicable code provisions of the corporate governance code throughout the year ending March 31, 2023[92]. - The company has adopted the principles and code provisions set out in the corporate governance code as the basis for its corporate governance practices[91]. - The company has adopted a standard code for securities trading, confirming compliance by all directors for the fiscal year ending March 31, 2023[93]. - The board consists of 14 members, including 2 executive directors, 7 non-executive directors, and 5 independent non-executive directors[101]. - The board held a total of 4 regular meetings, 2 audit committee meetings, 1 remuneration committee meeting, 1 nomination committee meeting, and 1 annual general meeting during the fiscal year[105]. - The company aims to become a leading environmental hygiene service provider in the Greater Bay Area, focusing on health protection, environmental sustainability, and smart city initiatives[96]. - The management emphasizes the importance of service quality, environmental management, and occupational health and safety in daily operations[97]. - The company is committed to maintaining high ethical standards and encourages employees to report any monitoring failures or suspicions of improper conduct[97]. - The board regularly reviews the company's financial status and strategic development, ensuring alignment with its values and objectives[96]. Risk Management and Compliance - The company has identified major risks categorized as strategic, operational, financial, compliance, and environmental, social, and governance risks[145]. - The company aims to maintain its market leadership in the environmental hygiene services industry by enhancing operational efficiency and service quality, and introducing innovative technologies[145]. - The company has established a diverse customer base, including multiple government departments and non-governmental clients, to mitigate bidding risks[145]. - The company has implemented a series of occupational safety measures to protect employee health and safety, including necessary training and guidelines[148]. - The company has taken actions to ensure frontline employee safety against infectious diseases, including providing personal protective equipment and safety guidelines[146]. - The company has established internal monitoring procedures for selecting suppliers to ensure the quality of cleaning and disinfecting products[149]. - The company has adopted information security guidelines to mitigate risks associated with information systems and ensure data integrity[150]. - The company has a risk management and internal control system designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatements[141]. - For the fiscal year ending March 31, 2023, the company reported an effective risk management and internal control system, covering financial, operational, compliance, and environmental, social, and governance risks[153]. Employee and Shareholder Relations - The number of employees as of March 31, 2023, was over 7,400, a decrease from over 13,000 as of March 31, 2022, primarily due to the completion of certain long-term contracts and a reduction in temporary workers[50]. - The company regularly reviews its employee compensation packages to maintain competitiveness in a labor-short market[148]. - The company maintains communication with shareholders through various channels to safeguard their rights and interests[164]. - The company’s financial performance and strategic information were presented at the annual general meeting, with the board reviewing the effectiveness of shareholder communication policies[173]. Donations and Community Engagement - The company’s total donations for the year ended March 31, 2023, amounted to approximately HKD 15,000, a decrease from HKD 28,000 in 2022[191]. Miscellaneous - The company has not experienced any significant events after the reporting period up to the date of the annual report[196]. - The company’s independent auditor provided a statement of responsibility regarding the financial statements, ensuring transparency and accountability[158]. - The company’s internal control review involved interviews and document reviews to identify deficiencies and recommend improvements[153]. - The company’s charter documents remained unchanged during the fiscal year, with proposed amendments to enhance shareholder protection to be presented at the upcoming annual general meeting[163].
庄臣控股(01955) - 2023 - 年度财报