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正利控股(03728) - 2022 - 年度财报
CHING LEECHING LEE(HK:03728)2022-07-28 08:34

Financial Performance - Total revenue for the fiscal year ended March 31, 2022, was approximately HKD 536.5 million, a decrease of about HKD 372.3 million or 41.0% compared to HKD 908.8 million for the previous fiscal year[7]. - Revenue from superstructure construction services decreased by approximately HKD 252.7 million or 33.7%, totaling HKD 497.1 million for the fiscal year ended March 31, 2022[14]. - Revenue from RMAA services decreased by approximately HKD 115.1 million or 85.8%, totaling HKD 19.1 million for the fiscal year ended March 31, 2022[17]. - Gross profit decreased by approximately HKD 37.1 million or 60.5%, from approximately HKD 61.3 million to approximately HKD 24.2 million for the fiscal year ended March 31, 2022[21]. - Gross margin for the fiscal year ended March 31, 2022, was approximately 4.5%, down from 6.7% in the previous year[21]. - The company reported a loss of approximately HKD 18.2 million for the year ended March 31, 2022, compared to a profit of HKD 11.5 million for the previous year, primarily due to a decrease in gross profit of approximately HKD 37.1 million[28]. - Other income and gains decreased by approximately HKD 5.6 million or 59.1% to approximately HKD 3.9 million for the year ended March 31, 2022, mainly due to the absence of government subsidies from the Employment Support Scheme[22]. - Administrative and other operating expenses decreased by approximately HKD 8.4 million or 15.7% to approximately HKD 45.3 million, primarily due to a reduction in employee costs of approximately HKD 5.3 million[23]. - Financing costs decreased by approximately HKD 1.7 million or 33.2% to approximately HKD 3.3 million, mainly due to a reduction in average bank borrowings[24]. - The company's total assets as of March 31, 2022, were approximately HKD 321.8 million, with total liabilities of approximately HKD 217.1 million and equity of approximately HKD 104.7 million[29]. - The capital-to-debt ratio improved to approximately 67.0% as of March 31, 2022, compared to 74.1% the previous year[30]. Business Strategy and Outlook - The company remains confident in the economic outlook for the Hong Kong construction market despite anticipated downward pressure due to the COVID-19 pandemic[8]. - The company plans to focus on its core business as a general contractor in Hong Kong, providing substructure and superstructure construction services, as well as RMAA services[8]. - The company will explore new opportunities and potential acquisition targets to enhance shareholder value[8]. - The company aims to leverage its skills and experience in the construction industry to explore property development project opportunities in the future[9]. - The company acknowledges the ongoing challenges posed by the COVID-19 pandemic but is committed to maintaining a robust financial position[6]. Human Resources and Management - The company employed a total of 94 employees as of March 31, 2022, down from 120 employees the previous year, with employee costs amounting to approximately HKD 51.2 million[43]. - The company has a strong management team with extensive experience in the construction industry, which is crucial for its operational success[58][60][63]. - The management team has extensive experience, with key members having over 30 years in audit, tax, and financial management[70]. - The company has appointed a new company secretary with over 16 years of experience in accounting and corporate sectors[86]. - The management team includes professionals with advanced degrees from prestigious institutions, enhancing the company's strategic capabilities[78]. - The company is currently led by Mr. Ng Choi Wah, who serves as both Chairman and CEO, a decision made to enhance stable leadership during a period of rapid development[110]. Corporate Governance - The company emphasizes high standards of corporate governance to maintain shareholder and stakeholder trust, which is crucial for long-term value creation[94]. - The board is responsible for formulating business strategies, reviewing and monitoring the group's performance, and approving financial statements and annual budgets[101]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance for the fiscal year ending March 31, 2022[96]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules, ensuring compliance with independence guidelines[100]. - The company has established a diversity policy for its board, considering various factors such as gender, age, cultural background, and professional experience in the selection of board members[119]. - The Nomination Committee is responsible for reviewing the board's structure and recommending suitable candidates for directorships, ensuring a balanced skill set and diversity[120]. - The company has established multiple communication channels with shareholders, including annual reports and quarterly reports, which are available on the company's website[143]. Environmental, Social, and Governance (ESG) Performance - The report covers the company's environmental, social, and governance (ESG) performance for the fiscal year from April 1, 2021, to March 31, 2022[154]. - The company adopts a top-down approach to implement sustainability strategies, focusing on environmental sustainability, respect for human rights, stakeholder engagement, employee support, and community support[152]. - Key performance indicators (KPIs) are supported by quantifiable data and metrics, ensuring transparency and accountability in ESG reporting[157]. - The board of directors actively supervises ESG matters, ensuring effective implementation of related policies and strategies[174]. - The company has identified 26 significant environmental, social, and governance (ESG) issues, with a focus on occupational health and safety, and service quality as the most critical topics[188]. - The company has implemented a series of environmental protection measures to reduce carbon emissions and operational impact, adopting ISO 14001:2015 environmental management system since 2009[192]. - The company will continue to engage with stakeholders to gather feedback and reassess the prioritization of ESG issues to ensure their relevance and importance[189]. - The company emphasizes the importance of service quality in its operations, particularly in construction and consulting services, to maintain high-quality management standards[188]. Risk Management - The company has adopted a three-tier risk management approach to identify, assess, mitigate, and respond to risks[131]. - The company cannot guarantee it will not face claims due to defects in its projects, which could lead to additional costs[55]. - The company may face legal liabilities due to construction and labor disputes, which could adversely affect financial performance[54]. - The company is dependent on its board members and senior management; their departure could negatively impact operations and financial performance[54]. - The company relies on suppliers for concrete, steel, and other construction materials; any shortages or delays could have a significant negative impact on operations[54]. - The company is labor-intensive, and any labor shortages or significant increases in labor costs could adversely affect financial performance[54]. Operational Efficiency - The company reported a significant increase in operational management efficiency, particularly in foundation engineering and contract management[77]. - The company has a strong focus on project management, with a project director responsible for overall operational management since 2013[77]. - The company is actively expanding its safety management systems, with a dedicated safety officer overseeing compliance and safety protocols[81].