Financial Performance - The company recorded a net loss of approximately HKD 23.2 million for the fiscal year ending March 31, 2023, compared to a net profit of approximately HKD 13.7 million in the previous year[7]. - Revenue decreased to approximately HKD 189.4 million for the fiscal year ending March 31, 2023, down from approximately HKD 337.4 million in the previous year[11]. - The company's total revenue decreased from approximately HKD 337.4 million in the year ended March 31, 2022, to approximately HKD 189.4 million in the year ended March 31, 2023, representing a decline of about 43.9%[16]. - Revenue from construction contracts fell from approximately HKD 288.9 million to approximately HKD 165.2 million, a decrease of about HKD 123.7 million or approximately 42.8%[17]. - Revenue from the sale of building materials decreased by approximately HKD 24.3 million or about 50.1%, from approximately HKD 48.5 million to approximately HKD 24.2 million[18]. - The company's gross profit dropped from approximately HKD 56.1 million to approximately HKD 15.1 million, a decline of about 73.1%[21]. - The gross profit margin decreased from approximately 16.6% to about 8.0%[21]. - Selling and service costs were approximately HKD 174.3 million, down about 38.0% from approximately HKD 281.3 million in the previous year[20]. - The company's financial costs increased by approximately 156.7%, from about HKD 1.3 million to approximately HKD 3.4 million[27]. - The group did not recommend a final dividend for the year ended March 31, 2023, compared to a final dividend of HK$0.005 per share in 2022[122]. - As of March 31, 2023, the company's distributable reserves were approximately HK$121.0 million, down from HK$142.7 million in 2022[124]. Market Position and Projects - The company completed a major public project as part of its ten-year hospital development plan, which will enhance its market share in public works[7]. - A new series of gypsum products was launched, offering specifications similar to existing German products but at a more competitive price, receiving positive market feedback[7]. - The company is involved in several large residential projects in East Kowloon and Tseung Kwan O, with optimism for long-term growth due to government initiatives to increase land and housing supply[8]. - The company has been awarded a community health center construction project under the ten-year hospital development plan, responsible for supplying and installing approximately 20,000 square meters of gypsum products[12]. - The company has also secured another public utility project, supplying approximately 5,000 square meters of gypsum products, showcasing its capabilities to developers[12]. - The competitive landscape has intensified, with competitors adopting aggressive pricing strategies, impacting the company's revenue from flooring projects[11]. - The company is focusing on improving its gypsum installation systems to meet enhanced construction standards, maintaining its competitive edge[12]. - The introduction of new noise reduction guidelines by the Environmental Protection Department is expected to benefit the company's gypsum products that comply with these standards[12]. Financial Position and Equity - Total equity as of March 31, 2023, was approximately HKD 129.1 million, down from HKD 156.3 million in 2022, representing a decrease of about 17.2%[31]. - Net current assets as of March 31, 2023, were approximately HKD 70.5 million, a decline from HKD 96.7 million in 2022, indicating a decrease of about 27.1%[32]. - Cash and cash equivalents as of March 31, 2023, were approximately HKD 24.8 million, compared to HKD 28.2 million in 2022, reflecting a decrease of about 12.0%[33]. - Bank borrowings as of March 31, 2023, amounted to approximately HKD 64.5 million, an increase from HKD 48.5 million in 2022, representing a rise of about 33.0%[35]. - The debt-to-equity ratio increased to 51.5% in 2023 from 31.1% in 2022, indicating a significant rise in leverage[36]. - The current ratio decreased to 1.7 in 2023 from 2.0 in 2022, suggesting a decline in short-term liquidity[36]. - The company anticipates future operations and expansion plans will primarily be funded through cash generated from operations and bank borrowings[38]. - As of March 31, 2023, the company had contingent liabilities related to performance guarantees amounting to approximately HKD 14.7 million, up from HKD 12.8 million in 2022[41]. - Contract assets as of March 31, 2023, were valued at approximately HKD 92.8 million, down from HKD 117.5 million in 2022, indicating a decrease of about 21.0%[50]. Corporate Governance - The board emphasizes the importance of corporate culture in operations, promoting values such as excellence and sustainable development[72]. - The board has established three committees, including the Audit Committee, Nomination Committee, and Remuneration Committee, to oversee various aspects of corporate governance[74]. - The company has complied with listing rules regarding the appointment of at least three independent non-executive directors, ensuring proper professional qualifications and financial expertise[77]. - The company has implemented appropriate liability insurance for directors against legal actions, with annual reviews of the insurance coverage[75]. - The board consists of a mix of executive and independent non-executive directors, ensuring a balance of power and accountability[76]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[73]. - The company has a diverse board with independent directors contributing to balanced decision-making and accountability[74]. - All independent non-executive directors have confirmed their independence according to Listing Rule 3.13, ensuring a broad range of valuable business experience and expertise on the board[78]. - The company has established mechanisms to ensure independent viewpoints, including enhanced recruitment procedures for independent non-executive directors and annual reviews of their contributions[78]. - Each director has participated in continuous professional development, with training courses attended by all executive and non-executive directors[81]. - The board has adopted a nomination policy effective from January 1, 2019, to ensure a balanced skill set and diversity among board members[85]. - The company holds at least four board meetings annually, with provisions for electronic participation to ensure all directors can attend[86]. - The attendance record for board meetings shows that all directors attended 100% of the meetings held during the year ending March 31, 2023[88]. - The company has adopted the standard code of conduct for securities trading, confirming compliance by all directors for the year ending March 31, 2023[89]. - The audit committee held two meetings during the fiscal year ending March 31, 2023, to review the financial statements and auditor's reports[93]. - The remuneration committee conducted one meeting to review the discretionary bonuses and remuneration of executive directors and senior management for the fiscal year ending March 31, 2023[96]. - The nomination committee held two meetings to review the board's structure, size, and diversity policy during the fiscal year ending March 31, 2023[97]. - The company has adopted a board diversity policy, focusing on various aspects including gender, age, and professional experience[98]. - The company plans to maintain at least one female director on the board to ensure gender diversity[99]. - The remuneration committee's recommendations for executive compensation are based on the group's operational performance and individual contributions[96]. - The audit committee confirmed no disagreements regarding the reappointment of the external auditor for the upcoming fiscal year[93]. - The company complies with the requirement that at least one-third of the board consists of independent non-executive directors[100]. - The external auditor's fees for the year ended March 31, 2023, totaled HKD 925,000, with HKD 780,000 for assurance services and HKD 145,000 for non-assurance services[104]. - The company has established a clear level of responsibilities and reporting procedures to ensure assets are not misused and to identify key risks affecting performance[107]. - The independent review of the internal control and risk management systems concluded that they are effective and adequate, as reported to the audit committee and board[107]. - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and ensure timely disclosure of information[110]. - The company secretary confirmed compliance with the relevant training requirements, having completed no less than 15 hours of professional training during the year[109]. - The company has a non-competition agreement in place with its controlling shareholders, confirming no engagement in competing businesses as of March 31, 2023[102]. - The audit committee assists the board in overseeing financial, operational, compliance, and risk management controls[107]. - The company has adopted a shareholder communication policy to establish a two-way relationship and facilitate effective communication[110]. - The internal audit function is responsible for reviewing key operational processes and ensuring adherence to risk management policies[105]. - The company encourages shareholder participation in meetings to ensure their rights are respected and effectively exercised[113]. Environmental, Social, and Governance (ESG) Initiatives - The company aims for long-term sustainable growth while safeguarding stakeholder interests, emphasizing transparency and accountability in its ESG practices[173]. - The company has established communication channels with key stakeholders, including shareholders, employees, suppliers, customers, and the community, to address their expectations and concerns[178]. - The company is committed to minimizing its operational negative impact on the environment and has implemented policies and procedures to achieve its environmental goals[181]. - The company regularly reviews sustainability issues and their impact on operations to ensure ongoing relevance and importance[182]. - The company engages with stakeholders to understand their needs and expectations, facilitating better ESG performance and risk management[177]. - The company’s environmental policy has been communicated to all relevant personnel to ensure awareness and contribution towards achieving environmental objectives[181]. - Total greenhouse gas emissions for the year ended March 31, 2023, were 2,129.3 tons of CO2 equivalent, a decrease from 4,519.5 tons of CO2 equivalent for the year ended March 31, 2022, attributed to reduced sales of gypsum products[185]. - Total greenhouse gas emissions decreased from 4,519.5 tons CO2 in 2022 to 2,129.3 tons CO2 in 2023, representing a reduction of approximately 53%[186]. - Scope 1 emissions from gasoline consumption decreased from 19.7 tons CO2 (0.4%) in 2022 to 17.2 tons CO2 (0.8%) in 2023[186]. - Scope 2 emissions from purchased electricity increased from 40.4 tons CO2 (0.9%) in 2022 to 41.5 tons CO2 (2.0%) in 2023[186]. - The company consumed 52,510 kWh of electricity per employee in 2023, an increase from 51,126 kWh in 2022, indicating a rise of approximately 2.7%[190]. - Gasoline consumption per employee decreased from 213.72 liters in 2022 to 186.99 liters in 2023, a reduction of about 12.5%[190]. - Water consumption per employee increased slightly from 4.76 cubic meters in 2022 to 4.91 cubic meters in 2023[190]. - The company has committed to maintaining indoor temperatures between 24-26ºC during the summer months as part of energy-saving measures[190]. - The company has achieved a platinum rating for its gypsum brick products under the Hong Kong Green Building Council's green product certification[193]. - No hazardous waste was generated in the fiscal year ending March 31, 2023, and no significant non-compliance with environmental laws was reported[187][194]. - The company is actively promoting water conservation awareness among employees, resulting in increased consciousness regarding water usage[191]. Human Resources and Labor Practices - The group is committed to optimizing its human resource management system to promote fairness and equality in the workplace[199]. - The group has established human resource policies to ensure the elimination of discrimination based on age, gender, marital status, family status, sexual orientation, disability, race, nationality, or religion[199]. - The group confirms no serious violations of applicable labor laws and regulations in Hong Kong for the fiscal year ending March 31, 2023[199]. - As of March 31, 2023, the gender ratio among employees was 44% male and 56% female, achieving gender diversity within the workforce[99]. - The board has achieved gender diversity with at least one female executive director as of March 31, 2023[99].
乙德投资控股(06182) - 2023 - 年度财报