Financial Performance - The Group's total revenue for the year ended 31 March 2022 was approximately HK$613.6 million, a decrease of about 33.5% compared to HK$922.9 million in the previous year[12]. - The Group achieved a gross profit of HK$19.4 million, a turnaround from a gross loss of HK$13.3 million for the year ended 31 March 2021[12]. - The Group's net profit for the year was approximately HK$7.4 million[27]. - The gross profit increased by approximately HK$32.7 million, or approximately 245.9%, from a gross loss of approximately HK$13.3 million to a gross profit of approximately HK$19.4 million, with a gross profit margin of approximately 3.2%[35]. - The net profit for the Review Year was approximately HK$7.4 million, compared to a net loss of approximately HK$20.1 million for the previous year, resulting in a net profit margin of approximately 1.2%[38]. - The total staff cost incurred by the Group for the Review Year was approximately HK$96.2 million, a decrease from approximately HK$171.9 million in the year ended March 31, 2021[110]. Economic Context - Hong Kong's GDP grew by 6.4% in 2021, indicating a significant rebound after two difficult years due to the COVID-19 pandemic[10]. - The economic recovery in Hong Kong is still ongoing, with the economy approximately 2% below its size in 2018[10]. - The construction industry in Hong Kong experienced a loss of approximately 22.5%, equating to HK$38 billion, due to the pandemic[11]. - The gross value of construction works performed by main contractors in Hong Kong reached approximately HK$231,404 million, with a 0.7% growth compared to the previous year[24]. - The gross value of piling and related foundation works performed by main contractors grew 18.4%, reaching approximately HK$15,761 million[24]. - The construction demand in Hong Kong is expected to increase due to government initiatives to tackle housing shortages[21]. Operational Efficiency - The Group's cost control efforts have yielded significant results, contributing to the gross profit achieved[12]. - The Group has developed an improved cost control system to enhance operational efficiency amid COVID-19 pressures[27]. - Direct costs decreased by approximately HK$342.0 million, or approximately 36.5%, from approximately HK$936.2 million to approximately HK$594.2 million for the Review Year[35]. - Administrative expenses decreased by approximately HK$2.1 million, or approximately 10.0%, from approximately HK$21.1 million to approximately HK$19.0 million[38]. - Finance costs decreased to approximately HK$547,000 from approximately HK$771,000, primarily due to a decrease in average bank borrowings[38]. Corporate Governance - The Group has been committed to maintaining good corporate governance to safeguard shareholder interests and maximize shareholder value[135]. - The Company has complied with all code provisions set out in the Corporate Governance Code from the Listing Date to March 31, 2022[139]. - The Board consists of five members, including two executive directors and three independent non-executive directors, chaired by Mr. Yip[142]. - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance by all directors during the reporting period[141]. - The Company has a balanced composition of executive and non-executive directors to ensure independent judgment[142]. Risk Management - The Group faces industry risks related to the property market in Hong Kong, which may affect the availability of foundation projects[46]. - Compliance risks exist due to various laws and regulations governing the Group's operations, which may increase costs and operational burdens[52]. - Uncertainties in construction progress may arise from unexpected geological conditions, potentially leading to additional costs and project complexity[54]. - The Group's financial position and business operations may be adversely affected by significant unexpected geological conditions[55]. Community Engagement - The Group continues to engage in charitable activities to support the local community during challenging times[19]. - The Group values customer feedback and maintains strong relationships to enhance recognition and visibility in the foundation industry[79]. Future Outlook - The Group aims to explore business opportunities and expand its geographical coverage beyond the Hong Kong market[21]. - The Group aims to reduce reliance on major customers by undertaking larger projects for a broader customer base[78]. - The Company will continue to evaluate other business development opportunities when uncertainties about the pandemic decrease[107]. Environmental Management - The Group has established an environmental management system compliant with ISO 14001:2015 standards to minimize environmental impact from construction activities[70]. - The Group plans to acquire new, environmentally friendly machinery to comply with the NRMM Regulation[71].
龙昇集团控股(06829) - 2022 - 年度财报