Financial Performance - The company recorded revenue of approximately HKD 421.1 million for the year ended March 31, 2022, representing a slight increase of about 2.3% compared to HKD 411.8 million for the year ended March 31, 2021[5]. - The profit attributable to shareholders significantly increased to approximately HKD 4.4 million, compared to a loss of approximately HKD 46.4 million for the previous year[5]. - Revenue from foundation and site formation works for the year ended March 31, 2022, was approximately HKD 410.9 million, an increase of about HKD 11.3 million or 2.8% compared to the previous year[13]. - Revenue from machinery leasing decreased to approximately HKD 10.2 million, a reduction of about HKD 2.0 million or 16.4% from approximately HKD 12.2 million in the previous year[13]. - Gross profit for the year ended March 31, 2022, was approximately HKD 29.6 million, compared to a gross loss of approximately HKD 29.6 million in the previous year, resulting in a gross profit margin of about 7.0%[16]. - Other income for the year ended March 31, 2022, was approximately HKD 2.6 million, a decrease of about HKD 3.0 million or 53.6% from approximately HKD 5.6 million in the previous year[17]. - Administrative expenses increased to approximately HKD 25.8 million, an increase of about HKD 4.0 million or 18.3% compared to approximately HKD 21.8 million in the previous year[18]. - Net profit attributable to owners for the year ended March 31, 2022, was approximately HKD 4.4 million, a significant improvement from a loss of approximately HKD 46.4 million in the previous year[23]. Project and Contract Management - The company was awarded 20 new contracts with a total original contract value of approximately HKD 296.1 million and completed 31 projects with an original total contract value of approximately HKD 434.2 million[12]. - As of March 31, 2022, the company had 21 projects on hand, including ongoing and awarded but not yet commenced projects[12]. - The total amount of unbilled revenue allocated to performance obligations was approximately HKD 390.5 million as of March 31, 2022, compared to HKD 428.2 million in 2021[12]. Industry Outlook and Strategy - The company remains optimistic about the construction industry due to ongoing government investments in infrastructure and housing, which are expected to increase potential development opportunities[6]. - The company will continue to implement strict cost control measures and improve workflow efficiency in response to market competition and economic uncertainties[11]. - The company is actively seeking opportunities to expand its scope of work beyond being a subcontractor to becoming a general contractor in foundation engineering[10]. - The company will continue to focus on improving project cost control measures, strengthening project management teams, and enhancing production efficiency[55]. Corporate Governance - The company reported a strong performance with a focus on maintaining high corporate governance standards, which is essential for protecting and enhancing shareholder and stakeholder interests[73]. - The board of directors consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse governance structure[79]. - The company has adopted a board diversity policy aimed at achieving a balanced and sustainable development, recognizing the benefits of a diverse board on performance quality[88]. - The company has complied with the corporate governance code during the reporting period, except for the separation of the roles of chairman and CEO, which is currently held by the same individual[74]. - The company emphasizes the importance of effective corporate governance as a fundamental aspect of its operations[73]. - The company has a strong commitment to compliance with the standards of the securities trading code, with all directors confirming adherence during the reporting period[75]. Risk Management and Compliance - The board is responsible for maintaining a comprehensive risk management and internal control system to safeguard the group's assets and ensure compliance with applicable laws and regulations[107]. - During the reporting period, the group identified and assessed significant risks, confirming the establishment and adherence to appropriate internal control policies and procedures[107]. - The group has engaged an external independent consulting firm to review the effectiveness and efficiency of its risk management and internal control systems, with recommendations being implemented in phases[107]. - The company has not been aware of any significant legal issues related to bribery, fraud, or money laundering during the reporting period[182]. Environmental, Social, and Governance (ESG) - The company adheres to the Environmental, Social, and Governance (ESG) reporting guidelines set by the Hong Kong Stock Exchange, ensuring compliance with all "comply or explain" provisions during the reporting period[124]. - The company has established an environmental management system in accordance with ISO 14001:2015 to improve its ability to identify, reduce, and manage negative environmental impacts[131]. - The company has implemented measures to reduce air pollutant emissions, including the use of low-sulfur diesel in machinery and regular dust suppression during construction activities[132]. - The company aims to achieve energy savings and waste reduction through various environmental initiatives[147]. - The company has a commitment to environmental goals set by the Hong Kong SAR government regarding emissions, energy, water, material usage, and waste management[132]. Employee Management and Training - The total employee cost for the year ended March 31, 2022, was approximately HKD 116.8 million, up from HKD 104.5 million for the previous year, indicating an increase of 11.0%[49]. - The group employed a total of 363 employees as of March 31, 2022, compared to 319 employees as of March 31, 2021, representing a significant increase of 13.8%[49]. - The employee turnover rate for full-time staff was approximately 41%, with 18 full-time employees leaving the company during the reporting period[159]. - 16% of employees participated in training during the reporting year, with 15% of male employees and 26% of female employees engaged in training[169]. - The company has a performance evaluation system in place to review employee performance and compensation annually[152]. Health and Safety - The company reported zero work-related fatalities for the years 2019/20, 2020/21, and 2021/22, maintaining a work-related death rate of 0%[165]. - The company is committed to continuous improvement in occupational health and safety training, with regular safety meetings held among staff[163]. - The company has implemented a comprehensive occupational health and safety management system certified to ISO 45001:2018[162]. - The company has received awards for safety, including "The Best Safety Worker" and "The Best Safety Sub-contractor" during the reporting period[166].
荣智控股(06080) - 2022 - 年度财报