Financial Performance - For the fiscal year ending March 31, 2023, Vicon Holdings Limited reported revenue of approximately HKD 417.0 million, an increase of about HKD 260.4 million or 166.3% from approximately HKD 156.6 million in the previous fiscal year[8]. - The company achieved a profit of approximately HKD 2.4 million for the fiscal year, recovering from a loss of approximately HKD 24.6 million in the previous year[8]. - Revenue from projects where the company acted as the main contractor increased to approximately 90% of total revenue, up from about 17% in the previous fiscal year[11]. - As of March 31, 2023, the value of unfinished project revenue was approximately HKD 448.3 million, compared to HKD 29.5 million a year earlier[11]. - The company experienced a decrease in revenue from construction machinery leasing, which was approximately HKD 6.5 million, down from HKD 18.4 million, representing about 1.6% of total revenue compared to 11.7% in the previous year[13]. - Direct costs rose to approximately HKD 371.3 million from about HKD 110.3 million, primarily due to increased labor costs and inflationary pressures[17]. - The gross profit decreased from approximately HKD 46.3 million in FY2022 to about HKD 45.7 million in FY2023, representing a decline of approximately HKD 0.6 million[19]. - The gross profit margin fell from approximately 29.6% in FY2022 to about 11.0% in FY2023, indicating a significant reduction in profitability[20]. - Other income shifted from a loss of approximately HKD 1.1 million in FY2022 to an income of about HKD 2.3 million in FY2023, primarily due to gains from machinery sales[22]. - The impairment loss on financial assets increased to approximately HKD 35.2 million in FY2023 from HKD 33.9 million in FY2022, reflecting the latest assessment of default risk[23]. - As of March 31, 2023, the expected credit loss rate was approximately 19.50%, up from 3.16% in FY2022, indicating increased risk in contract assets[26]. - Administrative expenses decreased significantly from approximately HKD 36.4 million in FY2022 to about HKD 10.2 million in FY2023, mainly due to reduced employee costs[27]. - Financing costs dropped by approximately 75.0% from HKD 2.6 million in FY2022 to about HKD 0.7 million in FY2023, attributed to the repayment of several finance leases[28]. - The net cash and cash equivalents as of March 31, 2023, were approximately HKD 18.6 million, down from HKD 25.5 million in FY2022[35]. - The capital expenditure for the year was approximately HKD 3.3 million, a decrease from HKD 5.3 million in FY2022, due to increased purchases of vehicles and leasehold improvements[42]. - The company's equity holders' profit shifted from a loss of approximately HKD 24.6 million in FY2022 to a profit of about HKD 2.4 million in FY2023[30]. Market Outlook and Strategy - The company anticipates a competitive construction market in Hong Kong for the upcoming year, which may impact bidding prices and contract awards[9]. - Management will continue to monitor project costs and collaborate with subcontractors and suppliers to address any cost issues in the foundation industry[9]. - The company plans to maintain its focus on "design and build" projects to leverage its expertise in foundation design and project management[9]. - The board is committed to adjusting operational strategies to enhance shareholder returns amid industry challenges[9]. Employee and Workforce - As of March 31, 2023, the group had a total of 22 employees, an increase from 13 employees in the previous year, with total employee costs amounting to approximately HKD 13.9 million, compared to HKD 13.5 million in 2022[48]. - The overall employee turnover rate for fiscal year 2023 was 13.64%, a significant decrease from 92.31% in fiscal year 2022[128]. - The turnover rate for male employees in fiscal year 2023 was 12.50%, down from 120.00% in fiscal year 2022, while female turnover increased to 16.67%[128]. - The employee composition at the end of the reporting period was 77% male and 23% female[121]. - The company provides ongoing professional development opportunities for employees to enhance their skills and service quality[132]. - The average training hours completed per employee in fiscal year 2023 is 5.27 hours, an increase from 5.15 hours in fiscal year 2022[136]. - The average training hours for senior management in fiscal year 2023 is 6.39 hours, up from 5.88 hours in fiscal year 2022[136]. - The percentage of trained employees by gender and employee category for the fiscal year 2023 is 72.73% male and 27.27% female, compared to 76.92% male and 23.08% female in fiscal year 2022[136]. - The company emphasizes the importance of safety training, providing employees with safety production training and encouraging compliance with applicable laws[132]. - The company has not reported any work-related injuries or fatalities over the past three years, including the reporting period[132]. Environmental, Social, and Governance (ESG) - The group has established a dedicated ESG reporting team to enhance its environmental, social, and governance performance and disclosures[62]. - The group has committed to sustainable operations while balancing the interests of various stakeholders, encouraging participation in environmental and social activities[63]. - The group has achieved a reduction in emissions, waste generation, and resource consumption density compared to the previous fiscal year[63]. - The company has identified 13 key ESG issues that are significant for its business and stakeholders, focusing on areas such as waste management, employee compliance, and environmental compliance[82]. - The company has not reported any significant environmental compliance issues during the reporting period, adhering to local environmental laws and regulations[88]. - Air pollutant emissions have increased due to business activity growth and an expanded workforce, with plans in place to reduce emissions from vehicle fuel consumption[89]. - The company is committed to maintaining consistent reporting and calculation methods for ESG performance to ensure comparability across years[68]. - The company actively promotes environmental sustainability through training and the use of eco-friendly products, aiming for long-term growth and development[86]. - The company conducts regular performance reviews to meet environmental goals and stakeholder expectations[86]. - The company engages stakeholders in prioritizing ESG issues based on their importance to business development and sustainability[77]. - The company has established a matrix to illustrate the significance of various ESG issues to stakeholders and the business[78]. - The company is focused on preventing pollution and minimizing waste as key considerations in its core management processes[86]. - Nitrogen oxides emissions increased to 9.50 kg in FY2023 from 4.84 kg in FY2022, representing a 96.7% increase[90]. - Total greenhouse gas emissions rose to 79.14 tons in FY2023 from 47.29 tons in FY2022, marking a 67.4% increase[97]. - The intensity of greenhouse gas emissions per employee decreased slightly to 3.60 tons in FY2023 from 3.64 tons in FY2022[97]. - The total amount of hazardous waste generated increased to 2.75 kg in FY2023 from 1.85 kg in FY2022, a 48.6% increase[101]. - The total amount of non-hazardous waste generated rose to 798.00 kg in FY2023 from 498.00 kg in FY2022, a 60.3% increase[101]. - Energy consumption totaled 164.76 thousand kWh in FY2023, up from 152.29 thousand kWh in FY2022, a 8.2% increase[106]. - The intensity of energy consumption per employee decreased to 7.49 thousand kWh in FY2023 from 11.71 thousand kWh in FY2022, a 36.5% decrease[106]. - The company implemented various energy-saving measures, including the use of LED bulbs and reducing private vehicle usage[106]. - The total amount of paper recycled increased to 145 kg in FY2023 from 118 kg in FY2022, a 22.9% increase[102]. - The company aims to continue optimizing policies to control future emissions and waste generation[105]. - Total water consumption for the fiscal year 2023 was 48,078 cubic meters, with a water intensity of 2,185.36 cubic meters per employee[112]. Corporate Governance - 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[158]. - The board held a total of 4 meetings and 1 annual general meeting during the fiscal year ending March 31, 2023, with all directors attending all meetings[171]. - The company has adopted a board diversity policy to enhance equal participation opportunities, considering various objective factors such as gender, age, and professional experience[167]. - The nomination committee was established on November 30, 2017, to review the board's structure and diversity at least annually and recommend changes as necessary[173]. - The board is responsible for formulating the overall strategy and monitoring the performance of senior management, ensuring effective governance[166]. - All directors participated in continuous professional development to enhance their knowledge and skills, ensuring informed contributions to the board[159]. - The chairman and CEO roles are currently held by the same individual, which the board believes is appropriate for unified leadership and effective strategic planning[163]. - Independent non-executive directors confirm their independence according to the listing rules, providing strong support for the board's duties[164]. - The company has arranged appropriate insurance coverage for legal actions against its directors[172]. - The board receives monthly updates on the company's performance and financial status to fulfill its responsibilities effectively[166]. - The remuneration committee held one meeting during the year ending March 31, 2023[181]. - The remuneration committee consists of one executive director and two independent non-executive directors, with a total of three members[179]. - The audit committee held two meetings during the year ending March 31, 2023[187]. - The audit committee is composed of three independent non-executive directors, all of whom attended all meetings[188]. - The auditor's fees for the year amounted to 900,000 HKD for audit services[192]. - The company secretary participated in no less than 15 hours of relevant professional training during the review year[193]. - The company plans to recommend the reappointment of the auditor at the 2023 annual general meeting[190]. - The board of directors is responsible for developing and reviewing corporate governance policies and practices[191]. - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[196]. - The company has established a procedure for shareholders to nominate individuals for the board of directors[199]. - The process aims to ensure transparency and shareholder engagement in board nominations[199]. - The company encourages active participation from shareholders in governance matters[199]. - The nomination procedure is part of the company's commitment to good corporate governance practices[199]. - Shareholders are advised to adhere to the specified guidelines for nominations[199]. - The company will review all nominations in accordance with its established policies[199].
VICON HOLDINGS(03878) - 2023 - 年度财报