Financial Performance - For the fiscal year 2022, the company's revenue decreased by approximately 45.9% to about HKD 470.4 million from approximately HKD 870.2 million in the fiscal year 2021[23]. - Despite the revenue decline, the company recorded a gross profit increase of about 5.4%, rising from approximately HKD 66.1 million to about HKD 69.7 million[23]. - The profit attributable to the company's owners was HKD 6.8 million, down 81.7% from HKD 37.1 million in the previous year[51]. - The gross profit margin increased to 14.8%, compared to 7.6% in the previous year, reflecting a 94.7% increase[51]. - The interest coverage ratio decreased to 9.4 times, down 52.8% from 19.9 times in the previous year[51]. - The company's return on equity was 2.4%, a decrease of 82.0% from 13.3% in the previous year[51]. - Administrative and other operating expenses decreased from approximately HKD 75.6 million in the fiscal year 2021 to approximately HKD 65.4 million in the fiscal year 2022, a reduction of about 13.5%[60]. - Financing costs decreased from approximately HKD 2.0 million in the fiscal year 2021 to approximately HKD 1.2 million in the fiscal year 2022, a decline of about 40.1%[61]. - Income tax expenses increased from approximately HKD 1.5 million in the fiscal year 2021 to approximately HKD 3.5 million in the fiscal year 2022, primarily due to the absence of non-recurring tax exemptions[62]. - The total employee cost for the fiscal year 2022, including director remuneration and mandatory provident fund contributions, was approximately HKD 42.7 million, a decrease from HKD 47.5 million in the previous year[96]. Contract and Project Management - The total value of new contracts awarded in fiscal year 2022 was approximately HKD 151.5 million, a decrease of about 80.6% compared to HKD 791.1 million in the previous year[25]. - As of March 31, 2022, the value of projects on hand was approximately HKD 789.5 million, down about 8.4% from HKD 861.5 million a year earlier[25]. - The estimated total contract balance as of March 31, 2022, was approximately HKD 789.5 million, down 8.4% from HKD 861.5 million in the previous year[54]. - The company secured ten new contracts with a total contract value of approximately HKD 151.5 million, a decrease of 80.6% from HKD 791.1 million in the previous fiscal year[54]. - Project delays, particularly due to COVID-19, have significantly impacted the group's cash flow and project completion timelines[107]. - The group faced delays in major subcontracting contracts due to the ongoing COVID-19 pandemic, which is expected to continue impacting project progress in the foreseeable future[97]. - The company anticipates stable performance in subcontracting projects over the next few years due to the current project backlog[25]. Market Outlook and Economic Conditions - The company expects the Hong Kong economy to gradually recover, given the progress in controlling the pandemic in China and Hong Kong[26]. - The construction labor market remains tight, facing challenges such as global interest rate hikes and ongoing tensions in US-China relations, which may increase market volatility and uncertainty[26]. - The group expects project progress to accelerate as economic activities recover, despite ongoing uncertainties in the private property market and competitive bidding[109]. - The company remains optimistic about long-term sustainable growth opportunities in the construction market due to the Hong Kong government's land and housing policies[29]. Governance and Management - The company has a strong governance structure with independent non-executive directors serving on various committees, including the audit and risk committees[125][126]. - The company is committed to environmental, social, and governance (ESG) practices, with dedicated committees overseeing these areas[125]. - The board consists of two executive directors and three independent non-executive directors, ensuring compliance with the requirement that independent non-executive directors represent at least one-third of the board[151]. - The company has adopted the corporate governance code principles and has fully complied with the corporate governance code during the fiscal year 2022[147]. - The roles of the chairman and the CEO are separated to avoid power concentration, with Mr. Wang serving as chairman and Ms. Zhou as CEO during the fiscal year 2022[157]. - The company has arranged appropriate insurance coverage for directors and senior management against potential legal claims arising from company activities, with annual reviews of the insurance coverage[158]. - The independent non-executive directors play a crucial role in providing impartial opinions on the company's strategy, performance, and control issues, ensuring the interests of all shareholders are considered[159]. Environmental and Social Responsibility - The group is committed to environmental protection and has implemented various measures to reduce its carbon footprint during construction projects[98]. - The group aims to reduce energy consumption and carbon footprint by adjusting air conditioning temperatures and increasing natural lighting[101]. - Future guidance indicates a commitment to sustainable practices, with a target of reducing carbon emissions by I% over the next five years[134]. Challenges and Risks - The construction industry faces risks from external factors such as political and economic conditions in Hong Kong, government project budgets, and material price increases[103]. - The group’s financial performance may be adversely affected if it fails to secure new contracts after completing existing ones, due to the highly competitive nature of the industry[104]. - The group maintains good relationships with subcontractors to address labor shortages and aging workforce issues, planning for increased labor supply through innovative construction methods[108]. - The group does not face significant foreign exchange risks as most transactions are denominated in Hong Kong dollars[85].
御佳控股(03789) - 2022 - 年度财报