Financial Performance - The company's revenue for the fiscal year 2022 decreased by approximately HKD 98.0 million or 38.5% to about HKD 156.6 million, compared to approximately HKD 254.6 million in the previous fiscal year[6]. - The group recorded a loss of approximately HKD 24.6 million for the fiscal year 2022, compared to a profit of approximately HKD 51.5 million in the previous fiscal year, representing a decrease in profit of about HKD 26.9 million[6]. - Revenue contribution from projects where the company acted as the main contractor decreased to about 17% of total revenue in fiscal year 2022, down from approximately 97% in fiscal year 2021[10]. - Revenue from construction machinery leasing decreased to approximately HKD 18.4 million in FY2022, down 48.6% from HKD 36.0 million in FY2021, representing 11.7% of total revenue compared to 14.1% in FY2021[13]. - Total revenue decreased by approximately HKD 98.0 million or 38.5% to about HKD 156.6 million in FY2022 from approximately HKD 254.6 million in FY2021[15]. Project Management and Operations - The number of unfinished project revenues as of March 31, 2022, was approximately HKD 29.5 million, compared to HKD 7.3 million as of March 31, 2021[11]. - The company completed 14 projects in fiscal year 2022, contributing approximately HKD 138.2 million in revenue, down from 9 projects and HKD 218.6 million in the previous fiscal year[12]. - The management adopted a cautious approach in pricing due to significant fluctuations in construction material prices and supply chain disruptions, leading to a decrease in the number of large projects awarded[12]. - The company will continue to focus on "design and construction" projects and leverage its expertise in foundation design and project management to meet future project requirements[7]. - The management will closely monitor the foundation industry and continuously adjust operational strategies to enhance shareholder returns[8]. Cost and Profitability - Gross profit increased to approximately HKD 46.3 million in FY2022 from a gross loss of about HKD 36.6 million in FY2021, with a gross margin of 29.6% compared to a gross loss margin of 14.4% in FY2021[18][19]. - Direct costs decreased to approximately HKD 110.3 million in FY2022 from about HKD 291.3 million in FY2021, primarily due to the absence of one-time additional costs related to subcontractor work[16]. - Other income/loss net amount decreased to a loss of approximately HKD 1.1 million in FY2022 from income of about HKD 5.8 million in FY2021, mainly due to a loss on disposal of approximately HKD 1.4 million[20]. - Financial asset impairment losses increased to approximately HKD 33.9 million in FY2022 from about HKD 10.1 million in FY2021, reflecting the latest assessment of default risk[21]. - Administrative expenses rose to approximately HKD 36.4 million in FY2022 from about HKD 9.1 million in FY2021, driven by increased employee costs and depreciation of machinery not used in construction projects[23]. Financial Position and Liquidity - Cash and cash equivalents increased to approximately HKD 25.5 million in FY2022 from HKD 14.6 million in FY2021[30]. - Current ratio improved to approximately 3.4 times in FY2022 from 2.3 times in FY2021[31]. - As of March 31, 2022, the group's capital debt ratio was approximately 3.1%, a significant decrease from 18.5% in 2021[34]. - The net current assets as of March 31, 2022, were approximately HKD 173.8 million, up from HKD 152.3 million in 2021, primarily due to proceeds from the sale of certain properties, plants, and equipment[35]. - The group's capital expenditure for the year was approximately HKD 5.3 million, slightly down from HKD 5.9 million in 2021[36]. Corporate Governance and Compliance - The board of directors plays a crucial role in overseeing ESG (Environmental, Social, and Governance) matters, ensuring alignment with investor expectations and regulatory requirements[61]. - The report was approved by the board of directors in June 2022, ensuring the accuracy and reliability of the disclosed information[56]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced composition for effective leadership[147]. - The company emphasizes continuous professional development for all directors to enhance their knowledge and skills, ensuring informed contributions to the board[148]. - The board aims to hold at least four meetings annually, with notifications sent to all directors at least 14 days prior to meetings[156]. Environmental Sustainability - The company has committed to developing policies and monitoring measures to improve ESG disclosures and performance[62]. - The group has reported a decrease in carbon footprint, indicating progress in environmental performance from the fiscal year 2020-2021 to 2021-2022[63]. - The company reported a significant reduction in nitrogen oxides emissions from 9.15 kg in FY2021 to 4.84 kg in FY2022, representing a decrease of approximately 47.3%[84]. - Sulfur oxides emissions decreased dramatically from 5.38 kg in FY2021 to 0.15 kg in FY2022, a reduction of about 97.2%[84]. - Total greenhouse gas emissions decreased from 925.51 tons in FY2021 to 47.29 tons in FY2022, representing a reduction of approximately 94.9%[89]. Employee Management and Training - Employee turnover rates for the overall workforce decreased from 126.09% in 2020 to 92.31% in 2021-2022[120]. - The company provided safety training to all employees, with no reported work-related injuries or fatalities over the past three years[125]. - The percentage of trained employees by gender shows that 76.92% of male employees received training compared to 23.08% of female employees[127]. - Average training hours completed per male employee were 5.50 hours, while female employees completed an average of 4.00 hours[127]. - The company promotes a harmonious work-life balance through annual events and team-building activities[111]. Community Engagement and Social Responsibility - The group donated HKD 200,000 to charitable organizations and HKD 50,000 for church operations and general sponsorship during the reporting period[138]. - The group has established a transparent labor policy and has not encountered any incidents related to child labor or forced labor during the reporting period[128]. - The group has a total of 59 suppliers in Hong Kong and none in other regions, focusing on long-term strategic partnerships based on regular evaluations[129]. - The group has implemented a quality management system compliant with ISO 9001:2008 standards, ensuring project quality from the foundation stage to maintenance[130]. - No significant complaints regarding service quality were received during the reporting period[131].
VICON HOLDINGS(03878) - 2022 - 年度财报