Financial Performance - For the fiscal year ending March 31, 2022, the company recorded total revenue of approximately HKD 994.2 million, an increase of about 56.7% compared to HKD 634.4 million for the previous year[28]. - The gross profit rose by approximately 28.8% to about HKD 86.8 million from HKD 67.4 million in the previous year, primarily due to undertaking major projects[28]. - The net profit for the year was approximately HKD 41.2 million, a decrease of about 14.0% from HKD 47.9 million in the previous year[28]. - The group's revenue increased by approximately HKD 359.8 million or 56.7% from about HKD 634.4 million for the year ended March 31, 2021, to about HKD 994.2 million for the year ended March 31, 2022[37]. - Direct costs rose by approximately HKD 340.4 million or 60.0% from about HKD 567.1 million to about HKD 907.5 million, primarily driven by the corresponding increase in revenue[38]. - Gross profit increased by approximately HKD 19.4 million or 28.8% from about HKD 67.4 million to about HKD 86.8 million, while the gross profit margin decreased by about 1.9 percentage points to approximately 8.7%[39]. - Other income, gains, and losses decreased from about HKD 17.3 million to about HKD 0.9 million, mainly due to the absence of one-time subsidies received from the Hong Kong government in the previous year[41]. - Administrative and other operating expenses increased by approximately HKD 11.1 million or 41.0% from about HKD 27.1 million to about HKD 38.2 million, primarily due to employee costs and legal and professional fees[42]. - The net profit for the year decreased by approximately HKD 6.7 million or 14.0% from about HKD 47.9 million to about HKD 41.2 million, with an adjusted net profit margin of approximately 4.1%[44]. - As of March 31, 2022, the group had net current assets of approximately HKD 231.3 million and cash and bank balances of about HKD 122.8 million[46]. - Capital expenditure for the year was approximately HKD 7.7 million, down from about HKD 24.0 million in the previous year, primarily funded by internal resources[48]. - The group's debt-to-equity ratio as of March 31, 2022, was approximately 10.7%, compared to about 5.1% in the previous year[54]. Dividend Policy - The company does not recommend any final dividend for the fiscal year ending March 31, 2022, compared to a dividend of HKD 0.3125 per share in the previous year[29]. - The board does not recommend the payment of any final dividend for the year ended March 31, 2022[58]. - The board will consider various factors, including actual and expected financial performance, when deciding on dividend payments[82]. - The company has the right to review and amend its dividend policy at any time without creating a legal obligation to pay dividends[86]. - As of March 31, 2022, the company's distributable reserves amounted to approximately HKD 74.3 million, an increase from HKD 39.4 million as of March 31, 2021[111]. Market Opportunities and Strategy - The company anticipates significant market opportunities in the construction industry due to government infrastructure investments and development plans in Hong Kong[31]. - The management team emphasizes the importance of maintaining existing business relationships and focusing on completing current civil engineering projects to ensure project profitability[31]. - The company aims to implement effective cost control measures in response to the challenging business environment and rising construction costs[36]. Employee and Operational Management - The company has implemented measures to ensure employee health and safety while maintaining business operations amid the ongoing COVID-19 pandemic[36]. - The company will continue to actively monitor the development of COVID-19 and project progress, while maintaining communication with suppliers and clients[36]. - As of March 31, 2022, the group had 360 employees, an increase from 343 employees as of March 31, 2021, with total employee costs amounting to approximately HKD 186.7 million, up from HKD 144.9 million in the previous year[59]. - The group has enhanced its human resources by hiring several project management team leaders and engineers, although recruitment plans have faced delays due to a lack of suitable candidates[67][69]. Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules, fully complying with the code as of March 31, 2022[175]. - The board consists of three executive directors and three independent non-executive directors as of the date of the report[180]. - The company has maintained a high level of corporate governance, which is crucial for gaining and maintaining the trust of shareholders and stakeholders[174]. - The company has a strategy for continuous improvement in corporate governance practices to enhance accountability and transparency[174]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their status as independent individuals[182]. - The remuneration committee held two meetings in the fiscal year ending March 31, 2022, to review the service agreements and compensation of directors and senior management, deeming them fair and reasonable[192]. - The nomination committee conducted one meeting in the fiscal year ending March 31, 2022, to review and recommend the re-election of directors, considering diversity factors such as gender, age, and industry experience[193]. Risk Management - The company has a strong focus on risk management, with the audit director responsible for comprehensive control and identification of operational risks[169]. - The group faces several operational risks, including reliance on competitive bidding processes and potential liabilities from subcontractors failing to perform[60][61]. Shareholder Information - The major shareholder, New Brilliance Enterprises Limited, holds 1,200,000,000 shares, representing 75% of the company[128]. - The company confirms that at least 25% of its issued share capital is held by the public, in compliance with relevant listing rules[142]. - The independent non-executive directors have confirmed their independence according to the listing rules, and the company believes all independent non-executive directors are independent[143]. Equipment and Technology - The group has purchased a 49-meter concrete pump truck, two mobile cranes (one 50 tons and one 90 tons), and two excavators (one 22 tons and one 35 tons) as part of its equipment acquisition strategy[63]. - The group has applied cloud storage functionality and upgraded its existing accounting and administrative management systems, with funding expected to be fully utilized by March 31, 2023[72]. - The group has fully utilized the funding costs for adopting building information modeling technology[72].
誉燊丰控股(02132) - 2022 - 年度财报