Financial Performance - The company recorded revenue of approximately HKD 494.2 million for the fiscal year ending March 31, 2022, an increase of about HKD 35.7 million or 7.8% compared to HKD 458.5 million in the previous year[12]. - For the fiscal year ending March 31, 2022, the company reported revenue of approximately HKD 494.2 million, an increase of 7.8% from HKD 458.5 million in the previous year[26]. - The cost of revenue for the year was approximately HKD 433.5 million, representing a 21.1% increase from HKD 357.8 million in the prior year[27]. - The gross profit decreased to approximately HKD 60.7 million, down 39.7% from HKD 100.7 million, resulting in a gross margin decline from 22.0% to 12.3%[27]. - Net profit for the year was approximately HKD 11.5 million, a decrease of 77.1% from HKD 50.2 million in the previous year[34]. - The company recorded other income of approximately HKD 1.3 million, significantly lower than the previous year's HKD 4.8 million, which included one-time government subsidies[28]. - The company's administrative and other operating expenses decreased to approximately HKD 41.9 million from HKD 43.4 million in the prior year[29]. - The effective tax rate for the year was approximately 21.3%, up from 15.2% in the previous year, primarily due to changes in investment property sales[33]. - The company proposed a final dividend of HKD 0.015 per share, totaling HKD 9.0 million, down from HKD 15.0 million the previous year[35]. Contract and Project Updates - The total value of uncompleted contracts as of March 31, 2022, reached a record high of HKD 1,135 million, up from HKD 1,032 million a year earlier[7]. - The company successfully secured several new contracts during the year, benefiting from the Hong Kong government's expansionary fiscal policies and infrastructure investments[7]. - Major projects undertaken during the year included a steel structure and roofing project on Lamma Island, generating revenue of HKD 155.55 million, and several other ongoing projects with expected completion dates in 2022 and 2024[14]. - The company anticipates a steady flow of construction contracts from the public sector in the coming years, driven by government initiatives to develop a metropolitan area of 300 square kilometers[7]. - The construction market in Hong Kong remained relatively stable despite the uncertain business environment, with continued demand for residential and commercial buildings[17]. Operational Challenges - The company faced challenges due to the COVID-19 pandemic, including project delays and increased labor and material costs, particularly in steel prices[6]. Governance and Management - The company has a strong governance structure with a commitment to high standards of corporate governance, having complied with all provisions of the corporate governance code during the year[66]. - The board of directors is responsible for formulating the overall strategy and monitoring management performance, ensuring effective decision-making in a rapidly changing environment[70]. - The company has appointed independent non-executive directors to provide independent judgment on strategy, performance, resources, and ethical standards[59]. - The management team has extensive experience in the construction and engineering sectors, with key personnel having over 30 years of industry experience[61]. - The company is focused on continuous improvement in corporate governance practices to meet increasing regulatory requirements and shareholder expectations[66]. - The company has established various committees, including the audit committee, remuneration committee, and nomination committee, to enhance governance oversight[66]. - The chairman and CEO roles are held by different individuals to ensure a clear division of responsibilities[67]. - The company is committed to training and continuous professional development for its directors and senior management[70]. - The company has a dedicated company secretary with over 30 years of experience in accounting, auditing, and corporate governance[63]. - The management team is responsible for overseeing the operations of the group's construction materials trading business segment[62]. - The audit committee reviewed and assessed the group's financial reports and performance announcements during the year[81]. - The total fees paid to the auditor for audit services amounted to HKD 690,000, with no fees for non-audit services[87]. - All independent non-executive directors confirmed their independence from the group during the year[75]. - The company has established a board diversity policy to ensure a balanced representation of knowledge and perspectives[76]. - The remuneration committee reviewed overall employee salary adjustments and discretionary bonus payments[82]. - The board consists of a diverse range of backgrounds and extensive industry expertise to effectively oversee the company's operations[85]. - The company secretary completed no less than 15 hours of relevant professional training as required by the listing rules[90]. - The company has adopted a code of conduct for directors regarding securities trading in compliance with listing rules[92]. - The board members attended all meetings, with the chairman and CEO present at 100% of the board meetings[72]. - The audit committee is chaired by a member with appropriate professional qualifications and financial management expertise[81]. Environmental, Social, and Governance (ESG) Initiatives - Energy consumption reduced by 9.4% and carbon emission intensity decreased by 11%[106]. - Air pollutants reduced by 16% to 23%[106]. - Water usage decreased by 20%[106]. - Total training hours for employees increased significantly by 137%, from 371 hours to 878 hours[106]. - The company maintained zero fatalities in its operations this year[106]. - The company adopted a new climate change policy to address risks and opportunities related to climate change[106]. - The company set environmental goals to reduce energy consumption and carbon emissions by 2024[106]. - The company has been awarded the "Caring Company" title for five consecutive years by the Hong Kong Council of Social Service[106]. - The company encourages two-way communication with investors and provides detailed business information in annual and interim reports[95]. - The company has established a website to disclose financial and other information related to its operations[95]. - The company has established environmental, social, and governance (ESG) goals and strategies approved by the board of directors to create long-term value for stakeholders[115]. - The board regularly reviews the progress and performance of ESG objectives to ensure they are on track and makes necessary adjustments to action plans[119]. - The company has implemented risk management mechanisms to identify climate change risks and opportunities, ensuring the achievement of sustainability goals[115]. - A stakeholder engagement process has been established to understand expectations and assess the importance of ESG issues[116]. - The company has set mid-term environmental targets aligned with its long-term mission of "Building a Better Life"[119]. - The ESG working group is responsible for executing and reporting on ESG initiatives, ensuring alignment with the company's strategic plans[120]. - The company emphasizes the importance of providing employees with sustainable development opportunities and a balanced work-life environment[115]. - Regular feedback on ESG performance is provided to the board to evaluate the need for revisions in strategies and objectives[123]. - The company has committed to promoting green building practices to minimize environmental impact from operations[115]. - The ESG strategy is integrated into the company's overall business strategy to ensure comprehensive governance and risk management[120]. Sustainability and Environmental Impact - Total energy consumption decreased by 9.4%[144]. - NOx, SOx, and PM emissions reduced by 22%, 16%, and 23% respectively[144]. - Greenhouse gas emission density improved by 11%[144]. - Total harmless waste volume decreased by 15%[144]. - Water usage density reduced by 20%[144]. - The company established an Environmental, Social, and Governance (ESG) working group to address sustainability goals[131]. - Key performance indicators (KPIs) were identified for measuring ESG performance[127]. - Stakeholder engagement was emphasized to assess the importance of ESG issues[125]. - The company aims to integrate sustainable development values across various business areas[126]. - A sustainability consultant was hired to develop a questionnaire for key stakeholders regarding ESG issues[139]. - The company adheres to the ISO 14001:2015 environmental management system, ensuring compliance with environmental laws and regulations in Hong Kong and China[147]. - The company has obtained necessary permits from authorities in China, confirming compliance with noise control, waste gas emission, wastewater discharge, and solid waste management regulations[148]. - The company aims to reduce environmental impacts, avoid pollution, and minimize carbon footprint as part of its operational goals[150]. - The company promotes the use of green building materials to help reduce energy consumption in construction projects[150]. - The company has implemented measures to enhance employee and stakeholder awareness of environmental protection practices[151]. - The company recognizes the risks associated with climate change and has adopted a new climate change policy to mitigate potential impacts[154]. - The company is committed to contributing to carbon emission reduction by improving energy efficiency and reducing energy usage[155]. - The company has identified physical and transitional climate-related risks, implementing measures to mitigate these risks, such as better labor planning and communication with subcontractors[157]. - Total energy consumption for the group was 721.1 thousand kWh, down from 795.8 thousand kWh in the previous year[164]. - Diesel consumption for trucks decreased by over 21% compared to the previous year, while gasoline consumption for passenger vehicles slightly dropped by 2.6%[161]. - Greenhouse gas emissions from fuel combustion (Scope 1) decreased by 16.9% to 100.28 tons of CO2 equivalent[173]. - Indirect emissions from purchased electricity (Scope 2) reduced by 21.4% to 180.32 tons of CO2 equivalent[173]. - Overall greenhouse gas emissions decreased by 19.1% to 295.95 tons of CO2 equivalent[173]. - Energy consumption density increased slightly by 0.2% to 5.44 kWh per employee[164]. - The company plans to replace existing gasoline passenger vehicles with more energy-efficient electric vehicles in the medium to long term[160]. - The company has implemented energy-saving measures, including the use of LED lighting and independent air conditioning controls in offices[172]. - The company has replaced one vehicle in its fleet with an electric vehicle during the reporting year[169]. - Water consumption decreased by 26% in 2022, totaling 2,589 cubic meters compared to 3,503 cubic meters in 2021[177]. - Water density per employee reduced by 20%, from 23.91 cubic meters per employee in 2021 to 19.54 cubic meters per employee in 2022[177]. - Total water usage in the Chinese operations decreased by 19% due to fewer metal products requiring cleaning after welding[178]. - Packaging material usage increased by 113% in 2022, totaling 2,151 kilograms compared to 1,008 kilograms in 2021[182]. - The density of packaging materials used per million HKD factory revenue increased by 42.6%, from 38.0 kg to 54.2 kg[182]. - Non-hazardous waste from packaging materials increased by 14.9%, totaling 54 tons in 2022 compared to 47 tons in 2021[187]. - Greenhouse gas emissions density decreased by 11% in 2022, with a target to reduce it by 20% to 2 tons of CO2 equivalent per employee by 2024[192]. - Energy consumption density increased by 0.8% in 2022, with a target to reduce it by 10% to 4.89 kWh per employee by 2024[192]. - Water density target set to reduce by 10% to 21.5 cubic meters per employee by 2024[190]. - Non-hazardous waste target set to reduce by 5% to 44.7 tons by 2024[190]. Employee and Talent Management - The company emphasizes the importance of attracting and retaining top talent through competitive compensation, benefits, and rewards[195]. - The company aims to create a balanced work environment that allows employees to achieve their potential while being treated fairly and with respect[197]. - Competitive compensation and benefits are provided based on industry benchmarks, including healthcare, travel insurance, and retirement plan contributions[200].
应力控股(02663) - 2022 - 年度财报