Financial Performance - The Group's revenue for the year amounted to approximately HK$212.3 million, representing a decrease of approximately 38.6% from the previous year[12]. - Profit attributable to owners of the Company for the year was approximately HK$16.7 million[12]. - Revenue from marine construction works decreased by approximately 16.8% to approximately HK$138.9 million compared to the previous year[31]. - Gross profit from marine construction works was approximately HK$25.9 million, representing a decrease of approximately 34.6% with a gross profit margin of approximately 18.6%[32]. - Revenue from other civil engineering works amounted to approximately HK$60.0 million, accounting for approximately 28.3% of total revenue, down from approximately 46.4% the previous year[33]. - Gross profit from other civil engineering works was approximately HK$2.3 million, a decrease of approximately 82.7% with a gross profit margin of approximately 3.8%[34]. - The Group recorded total revenue of approximately HK$212.3 million and profit attributable to its owners of approximately HK$16.7 million for the Year[25]. - Gross profit decreased by approximately 46.1% from HK$56.0 million for the year ended 31 May 2021 to approximately HK$30.2 million for the Year, with an overall gross profit margin decrease from approximately 16.2% to approximately 14.2%[48]. - The revenue from vessel chartering services amounted to approximately HK$13.4 million, a decrease of approximately 27.0% compared to HK$18.3 million for the year ended 31 May 2021[40]. - Other income decreased from approximately HK$2.7 million for the year ended 31 May 2021 to approximately HK$1.7 million for the Year, primarily due to a significant decrease in government subsidies[42]. Business Operations - The Group was awarded a marine construction project as main contractor with a total contract sum of approximately HK$34.7 million[11]. - In July 2022, the Group was awarded two port work contracts as main contractor under the public sector, with an aggregated contract sum of approximately HK$261.4 million[22]. - The Group established a PRC subsidiary in June 2022 to explore and develop potential business opportunities in the e-commerce sector[11]. - The Group's patented reclamation approach increases cost effectiveness and efficiency while decreasing environmental impact compared to traditional methods[11]. - The Group aims to expand its customer base and adapt to changing customer demands in a timely manner[22]. - The Group will continue to dedicate resources to advance its market and engineering capacities in the e-commerce sector[23]. - The Group's business strategy focuses on creating a diversified and balanced portfolio, including construction and e-commerce businesses[24]. - The Group's principal activities include marine construction, civil engineering works, and vessel chartering services, with no significant changes in business nature during the year[141]. Market Conditions - The ongoing COVID-19 pandemic has temporarily affected market sentiment and the local economy, impacting the Group's operations[17]. - The ongoing uncertainty from COVID-19 is expected to continue impacting the economic recovery in Hong Kong[26]. - The Group expects the impact of the COVID-19 pandemic on operations to be manageable, based on past experiences[153]. - The Group anticipates a significant decrease in marine construction works during the forecast downturn from 2022 to 2026, impacting project mix and revenue contributions[154]. Financial Position - The Group's cash and bank balances as at 31 May 2022 were approximately HK$85.2 million, down from approximately HK$124.5 million as at 31 May 2021[50]. - The interest-bearing borrowings of the Group as at 31 May 2022 were approximately HK$1.0 million, a decrease from approximately HK$1.6 million as at 31 May 2021[50]. - The gearing ratio of the Group as at 31 May 2022 was approximately 0.5%, representing a decrease of approximately 37.5% from approximately 0.8% as at 31 May 2021[50]. - The Board resolved not to recommend any dividend for the Year, compared to approximately HK$25.0 million for the year ended 31 May 2021[51]. - As of May 31, 2022, the Company had no distributable reserves available for shareholders[186]. Human Resources - The total staff costs, including Directors' remuneration, for the year amounted to approximately HK$30.9 million, slightly down from approximately HK$31.2 million for the year ended May 31, 2021[59]. - As of May 31, 2022, the Group employed 62 employees, an increase from 46 employees as of May 31, 2021[59]. - The Group recognizes employees as valuable assets and provides competitive remuneration and development opportunities[164]. - There were no significant problems with employees due to labor disputes, nor any material difficulties in recruitment and retention of experienced staff[60]. Management and Governance - The strategic management team includes experienced directors with over 30 years in marine construction and civil engineering[84]. - The management team includes individuals with significant experience in technology and software development, enhancing the company's capabilities in e-commerce[98]. - The Group emphasizes independent judgement and strategic advice from its board members[119]. - The management is focused on seeking new opportunities and developing existing business to mitigate risks associated with contract acquisition[143]. Customer and Supplier Relationships - A significant portion of the Group's revenue is derived from a limited number of customers, and any decrease in contracts with major customers may adversely affect financial performance[144]. - The largest customer accounted for approximately 23.7% of total revenue, down from 33.0% in the previous year[188]. - The five largest customers contributed approximately 75.1% of total revenue, a decrease from 84.5% in the previous year[188]. - The Group maintains strong relationships with suppliers and subcontractors to ensure quality goods and services[166].
天成控股(02110) - 2022 - 年度财报