Financial Performance - The Group recorded a revenue of approximately HK$568.5 million for FY2023, representing an increase of approximately HK$74.3 million or 15.0% from FY2022[20]. - Gross profit for the year was approximately HK$100.8 million, reflecting a significant increase of 66.0% from approximately HK$60.7 million in the previous year[33]. - The gross profit margin improved to approximately 17.7%, up from 12.3% in the previous year[33]. - Profit before income tax increased to HK$45.3 million, a 209.9% rise from HK$14.6 million in the previous year[30]. - Net profit for the year was approximately HK$37.1 million, representing a 222.9% increase from HK$11.5 million in the previous year[30]. - The cost of revenue for the year was approximately HK$467.7 million, an increase of 7.9% compared to HK$433.5 million in the previous year[32]. - Administrative and other operating expenses for the year were approximately HK$52.6 million, an increase of approximately HK$10.7 million from approximately HK$41.9 million in the previous year[40]. - Finance costs for the year were approximately HK$2.1 million, an increase of approximately HK$0.9 million or 75.0% compared to HK$1.2 million in the previous year[36]. Business Outlook - The improvement in revenue was primarily due to the gradual subsiding of COVID-19 and the resumption of key project progress[20]. - The Group expects a steady flow of business opportunities in the medium to long term, particularly from construction projects associated with the Lantau Tomorrow Vision and Northern Metropolis development plans, anticipated to launch in 2024[12]. - The construction market continues to face challenges such as competition for manpower, rising material prices, and unstable transportation costs[11]. - The construction market is expected to see steady growth due to strong demand for residential and commercial buildings, supported by government policies[27]. - The Group's performance reflects a positive outlook for the construction industry in Hong Kong, driven by upcoming government projects[12]. Dividends - A final dividend of HK$3.0 cents per share has been recommended for shareholders[13]. - The Group has proposed a final dividend of HK3.0 cents for the Year, an increase from HK1.5 cents in FY2022, amounting to HK$16.7 million compared to HK$9.0 million in FY2022[193]. - The final dividend is subject to shareholder approval at the upcoming annual general meeting, with payment expected around 20 September 2023[193]. - No interim dividend was paid during the Year, consistent with FY2022[192]. Operational Highlights - The Group's business activities include structural engineering works, supply of building material products, and trading of building material products, with no significant changes in operations during the year[19]. - The Group's outstanding contracts on hand as of 31 March 2023 amounted to approximately HK$1,144 million[25]. - Major ongoing projects include the Design, Supply and Fixing of Roof Cladding Works for Certain Sports Facilities in Kowloon City, with expected completion in Q2 2024, valued at HK$259.5 million[24]. - The Group's projects include roadways, noise barriers, and building structures, which are expected to contribute positively to future revenue[12]. Corporate Governance - The company has maintained compliance with all provisions of the Corporate Governance Code during the year[104]. - The Board is committed to upholding good corporate governance standards for the benefit of shareholders[103]. - The Company has established an audit committee, a remuneration committee, and a nomination committee with specific written terms of reference[104]. - The Company has established various board committees to enhance corporate governance practices[111]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance throughout the Year[145]. Employee Relations - The total employee benefit expenses for the year were approximately HK$73.1 million, compared to HK$66.1 million in FY2022, reflecting an increase in workforce from 164 to 198 employees[70]. - The Directors recognize the importance of employee relationships, ensuring reasonable remuneration and regular training for skill improvement[189]. - The Group maintained a good relationship with its employees and did not experience significant labor disputes or recruitment difficulties during the year[70]. Risk Management - The Group's financial performance may be adversely affected by potential legal claims or disputes, which can divert management's focus from operations[181]. - Legal claims or proceedings may adversely impact the Group's business operations, diverting management's attention and incurring costs[175]. - The Company has engaged an external consultant to review its internal control and risk management system, which was deemed effective and adequate during the Year[149]. - The Company maintains effective internal controls and risk management systems, with external consultants reviewing these systems annually[154][155]. Current Financial Position - The current ratio decreased to 2.1 times from 2.5 times in the previous year, while the gearing ratio increased to 20.8% from 6.6%[30]. - As of March 31, 2023, the Group had net current assets of approximately HK$246.7 million, an increase from HK$226.5 million as of March 31, 2022[52]. - The Group's gearing ratio as of March 31, 2023, was 20.8%, up from approximately 6.6% in the Previous Year, due to increased bank borrowings[57]. - As of March 31, 2023, the Group had total cash and bank balances of approximately HK$114.8 million and fixed deposits of HK$10.1 million, compared to HK$105.4 million and no fixed deposits as of March 31, 2022[62]. - The Group generated a net cash inflow from operating activities of approximately HK$4.7 million for the year[63]. Shareholder Engagement - The Company encourages two-way communication with investors, providing extensive information through annual and interim reports[156]. - Shareholders holding at least one-tenth of the paid-up capital have the right to requisition an extraordinary general meeting, which must be held within two months of the request[160]. - The Company welcomes proposals from shareholders for discussion at meetings, following specified procedures[162].
应力控股(02663) - 2023 - 年度财报