Financial Performance - Revenue increased from approximately RMB 793.0 million for the year ended March 31, 2021, to approximately RMB 867.0 million for the year ended March 31, 2022, representing a growth of about 9.3%[9] - Gross profit decreased from approximately RMB 273.3 million to approximately RMB 234.1 million, a decline of about 14.3%[10] - Net profit fell from approximately RMB 101.2 million to approximately RMB 47.6 million, a decrease of about 52.9%[10] - Gross margin and net profit margin for the year ended March 31, 2022, were approximately 27.0% and 5.5%, respectively[11] - The company's revenue increased to RMB 867.0 million for the fiscal year ending March 31, 2022, representing a 9.3% increase from RMB 793.0 million for the fiscal year ending March 31, 2021[21] - Overall gross profit decreased by about 14.3% to RMB 234.1 million for the fiscal year ending March 31, 2022, down from RMB 273.3 million for the fiscal year ending March 31, 2021[23] - The company's sales cost increased by approximately 21.8% to RMB 632.9 million for the fiscal year ending March 31, 2022, up from RMB 519.7 million for the fiscal year ending March 31, 2021[22] - Other income increased by approximately RMB 9.4 million or 179.7% to RMB 14.7 million for the fiscal year ending March 31, 2022, compared to RMB 5.2 million for the fiscal year ending March 31, 2021[24] - Research and development expenses slightly increased to approximately RMB 25.4 million for the fiscal year ending March 31, 2022, from about RMB 24.3 million for the fiscal year ending March 31, 2021[25] - General and administrative expenses rose by approximately RMB 41.8 million or 47.8% to RMB 129.2 million for the fiscal year ending March 31, 2022, compared to RMB 87.4 million for the fiscal year ending March 31, 2021[27] - The financing costs increased by approximately RMB 7.1 million or 51.0% to RMB 21.1 million for the fiscal year ending March 31, 2022, from RMB 14.0 million for the fiscal year ending March 31, 2021[29] - For the fiscal year ending March 31, 2022, the company recorded a net profit of approximately RMB 47.6 million, a decrease of about 52.9% compared to RMB 101.2 million for the fiscal year ending March 31, 2021[17] Contracts and Future Outlook - The company has 288 ongoing contracts valued at approximately RMB 569.0 million and 42 expected contracts valued at approximately RMB 102.0 million as of March 31, 2022[11] - The company anticipates completing contracts worth approximately RMB 626.0 million for the year ending March 31, 2023[11] - The company plans to focus on medium to large tower cranes to meet the growing demand for prefabricated construction[12] - The company aims to establish a standardized after-sales service ecosystem for tower cranes to support sustainable development in the industry[12] - The company will continue to enhance its manufacturing and processing capabilities for tower cranes to meet diverse customer needs[12] - The company acknowledges the ongoing global economic uncertainties and will monitor recovery speeds across different economies to capture opportunities and mitigate operational risks[12] Assets and Liabilities - The company's net current assets decreased by RMB 257.0 million to RMB 451.9 million as of March 31, 2022, primarily due to an increase in trade payables[32] - As of March 31, 2022, the company's cash and cash equivalents amounted to RMB 169.9 million, a decrease of RMB 180.5 million compared to the previous year[34] - The company's bank borrowings increased to approximately RMB 642.0 million as of March 31, 2022, up from RMB 482.6 million in the previous year[34] - The current ratio decreased to 1.61 times as of March 31, 2022, down from 2.64 times the previous year, primarily due to an increase in trade payables[34] - The debt-to-equity ratio rose to 44.6% as of March 31, 2022, compared to 35.5% the previous year[34] - Lease liabilities decreased by 12.6% to approximately RMB 58.7 million as of March 31, 2022, from RMB 67.2 million the previous year[37] - The company had capital commitments of RMB 14.3 million for equipment not yet delivered as of March 31, 2022, an increase of RMB 13.9 million from the previous year[39] Employee and Remuneration - Total employee benefit expenses for the year ended March 31, 2022, amounted to RMB 108.0 million, a 33.4% increase from the previous year due to an increase in employee numbers and wages[50] - The company’s remuneration policy is based on employee performance, qualifications, and capabilities, with regular performance assessments conducted[125] - No directors waived any remuneration for the year ending March 31, 2022[125] Dividends and Shareholder Information - The proposed final dividend for the year ended March 31, 2022, is HKD 0.016 per share, totaling approximately HKD 18.67 million, down from HKD 35.01 million the previous year[48] - As of March 31, 2022, the company's distributable reserves amounted to approximately HKD 517.8 million, a decrease from HKD 571.3 million as of March 31, 2021[111] - The company proposed a final dividend of HKD 0.016 per share, totaling approximately HKD 18,669,940, subject to shareholder approval at the 2022 Annual General Meeting[97] - The company has a significant shareholder, Tat Hong China, which owns approximately 67.8% of the issued share capital[148] - As of March 31, 2022, the company’s board members and senior executives hold a total of 790,760,387 ordinary shares, representing about 67.77% of the company[145] Governance and Compliance - The company has complied with applicable laws and regulations without any significant violations during the fiscal year[105] - The company has adopted the corporate governance code under Appendix 14 of the listing rules, ensuring compliance with all applicable code provisions for the year ending March 31, 2022[185] - The company has established an audit committee consisting of three independent non-executive directors to review the consolidated financial statements for the year ending March 31, 2022[180] - The consolidated financial statements for the year ending March 31, 2022, have been audited by PwC, which is willing to be reappointed as the independent auditor at the upcoming annual general meeting[181] - The company has implemented a board diversity policy to enhance business development and improve board performance, considering factors such as gender, age, and professional experience[198] - The company is committed to maintaining high corporate governance standards to ensure the integrity, transparency, and quality of information disclosure[183] - The chairman and CEO positions are held by different individuals to ensure independence and accountability within the company[192] - The audit committee has been established in accordance with the corporate governance code to oversee financial reporting and compliance[180] Related Party Transactions - The company has ongoing related party transactions with Yongmao Group, with a transaction amount of RMB 101.7 million for the purchase of tower cranes and related parts for the year ending March 31, 2022[138] - The company also has a rental agreement with Yongmao Group, with a transaction amount of RMB 107.8 million for the rental of tower cranes and related parts for the same period[138] - As of March 31, 2022, Tat Hong Holdings owns approximately 24.0% of Yongmao, while Sun & Tian Investment Pte. Ltd. holds about 57.4%, making Yongmao a related party under the listing rules[141] - All independent non-executive directors have reviewed the related party transactions and confirmed that they are conducted in the ordinary course of business and on normal commercial terms[141] - The company’s related party transactions are governed by the Hong Kong Listing Rules Chapter 14A, ensuring compliance with disclosure requirements[143] - The auditor confirmed that all related party transactions were approved by the board and complied with relevant agreements[142] Management and Directors - Mr. Sun has over 24 years of experience in the construction machinery manufacturing industry and has been the Chairman and Executive Director of Yongmao since February 2008[68] - Mr. Liu has over 13 years of experience in the tower crane industry, including development, manufacturing, and management[69] - Mr. Guo has over 29 years of experience in the nuclear engineering industry and is currently the General Manager of the Bidding Management Department at China Nuclear Industry[70] - Ms. Pan has over 22 years of experience in auditing and accounting, currently serving as a partner at Taipei Onething CPAs Firm[75] - Mr. Yin has over 25 years of experience in venture capital and private equity investment, previously holding senior positions in various investment firms[78] - Mr. Yin has been an independent director of Nanofilm Technologies International Limited since May 2021, contributing to the company's strategic direction in nanotechnology solutions in Asia[79] - Dr. Huang, appointed as an independent non-executive director in December 2020, has over 30 years of experience in international political economy and business, providing independent advice to the board[80] - Ms. Wang, the Chief Financial Officer, oversees all financial activities, budgeting, and forecasting, with over 16 years of experience in auditing and finance[83] - Mr. Duan, Senior Vice President, has over 14 years of experience in the construction machinery rental industry, managing daily operations of the group and its subsidiaries[84] - Mr. Zhu, Senior Vice President, has over 34 years of experience in the construction industry, responsible for overseeing daily operations at Huaxing Dafeng[87] - Mr. Shen, Chief Engineer, has over 22 years of experience in technical supervision and project management within the construction and property development sectors[88] Corporate Social Responsibility - The group made charitable donations of approximately RMB 240,000 during the year, compared to none in the previous year[166] - The group is committed to environmental sustainability, focusing on energy conservation and recycling initiatives[106]
达丰设备(02153) - 2022 - 年度财报