Financial Performance - Revenue for the year ended March 31, 2023, was HK$462.2 million, a decrease of 2.4% compared to HK$473.7 million in 2022[12] - Gross profit increased to HK$77.5 million, reflecting a growth of 1.5% from HK$76.3 million in the previous year[12] - Profit for the year rose to HK$24.7 million, marking a 12.0% increase from HK$22.1 million in 2022[12] - The Group achieved a total revenue of approximately HK$462.2 million for FY2023, representing a slight decrease of 2.4% compared to FY2022's revenue of approximately HK$473.7 million[38] - The Group's gross profit for FY2023 rose to HK$77.5 million, compared to HK$76.3 million for FY2022, despite a slight drop in revenue[30] - Profit attributable to owners of the Company for FY2023 was approximately HK$24.7 million, representing about 5.4% of total revenue, compared to HK$22.1 million or 4.7% in FY2022[55] Assets and Liabilities - Total assets grew by 4.08% to HK$275.0 million, up from HK$264.2 million in the prior year[12] - Total equity increased by 8.14% to HK$211.3 million, compared to HK$195.4 million in 2022[12] - As of March 31, 2023, total current assets were approximately HK$239.4 million, while current liabilities were approximately HK$51.8 million, resulting in a current ratio of approximately 4.6 times[64] - Total assets as of March 31, 2023, were approximately HK$275.0 million, financed by total liabilities of approximately HK$63.7 million and total equity of approximately HK$211.3 million[65] - The Group's gearing ratio was 0.01 times as of March 31, 2023, indicating a stable capital structure with no changes during the year[66] Operational Highlights - The number of travelers to Hong Kong from January to March 2023 reached over 4.4 million, significantly up from 0.6 million for the entire year of 2022[16] - The company secured new environmental hygiene service contracts with various sectors, including public healthcare and hospitality, contributing to organic growth[17] - The Group anticipates growth in demand for environmental hygiene services, particularly in the hospitality, food and beverage, and retail sectors, due to an influx of travelers[22] - The Group's airline catering support services, temporarily suspended since March 2020, resumed in April 2023 as passenger air traffic increased[31] - The Group is well-positioned to capture business growth across various industries, including public transportation and retail, due to established relationships with key operators[36] Challenges and Risks - The Group faces challenges such as labor shortages and rising material prices, which may impact profitability, but is prepared to compete with advanced hygiene solutions[37] - The cost of services for FY2023 was approximately HK$384.7 million, representing about 83.2% of total revenue, compared to HK$397.3 million or 83.9% in FY2022[45] - General operating expenses increased by approximately 0.5% to about HK$51.4 million in FY2023, primarily due to higher provisions for long service payments[53] Corporate Governance - The Board consists of seven members, including four executive Directors and three independent non-executive Directors[101] - The Company has received annual confirmation of independence from all independent non-executive Directors, confirming their independence[104] - The Company has not appointed a chief executive officer; the role is performed collectively by all executive Directors[109] - The Board has established mechanisms to ensure independent views and input are available, including engaging professionals for independent opinions[117] - The Company targets to avoid a single gender Board and will review gender diversity based on its business model and specific needs[114] Committees and Meetings - The Board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee for oversight[98] - The Audit Committee reviewed the consolidated financial statements for the year ended March 31, 2023, and confirmed compliance with applicable accounting standards and legal requirements[138] - The Remuneration Committee comprises two independent non-executive Directors and one executive Director, focusing on remuneration policies for Directors and senior management[139] - The Nomination Committee held 1 meeting during the year ended March 31, 2023, to review the Board's structure, size, composition, and diversity, and to assess the independence of independent non-executive Directors[156] Risk Management - The Board is responsible for the risk management and internal control systems, ensuring an annual review of their effectiveness[189] - The Audit Committee reviews the effectiveness of the Group's risk management and internal control systems at least annually, covering all material controls[197] - The Group's risk management systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[189] - The Company recognizes that effective risk management is essential for long-term sustainable growth[191] Employee and Training - The Group had 1,647 employees as of March 31, 2023, a decrease from 1,886 in the previous year, with total staff costs decreasing by approximately 3.4% to about HK$283.6 million[64] - All directors participated in continuous professional development, with training records summarizing their activities for the year ended March 31, 2023[161] - The Company provides training to directors to keep them updated on legal and regulatory changes relevant to their duties[161] Shareholder Engagement - The Company adopted its Shareholders' Communication Policy on March 13, 2017, to enhance engagement with shareholders and provide them with relevant information[170] - Shareholders are encouraged to participate in general meetings, with arrangements in place to facilitate their involvement[173] - The Board confirmed that the Shareholders Communication Policy was effectively implemented during the year ended March 31, 2023[174]
永顺控股香港(06812) - 2023 - 年度财报