Financial Performance - The company reported a strong performance in the car park flooring industry, focusing on mid to high-end projects in Hong Kong and Macau[18]. - Revenue from flooring services, proprietary floor coating products, and ancillary services contributed significantly to the overall financial results[18]. - Revenue from the Hong Kong market for the year ended 31 March 2022 was approximately HK$105.0 million, a slight decline from HK$108.4 million in 2021[19]. - Revenue from the Macau market decreased to approximately HK$5.5 million, down from HK$10.5 million in 2021, primarily due to COVID-19 restrictions impacting tourism[19]. - For the year ended March 31, 2022, the Group recorded total revenue of approximately HK$110.4 million, a decrease of 7.1% compared to approximately HK$118.9 million for the year ended March 31, 2021[54]. - The Group's net profit decreased significantly from approximately HK$15.4 million for the year ended March 31, 2021, to approximately HK$7.4 million for the year ended March 31, 2022[55]. - The gross profit decreased by 14.5% from approximately HK$41.8 million for the year ended March 31, 2021, to approximately HK$35.7 million for the year ended March 31, 2022, with the gross profit margin declining from 35.1% to 32.4%[62]. - Other income and gains decreased significantly by approximately HK$1.1 million to approximately HK$418,000 for the year ended March 31, 2022, with no government subsidies received during that period[62]. Market Challenges - The overall economic environment in Macau has led to most main contractors and property developers postponing or suspending construction projects[19]. - The company anticipates a challenging business environment in the coming years due to competition in the car park flooring market and the economic impact of COVID-19[20]. - The decline in revenue from the Macau market was attributed to economic setbacks due to COVID-19, leading to postponed or suspended construction projects by major contractors and property developers[54]. - The economic conditions in Macau have severely impacted the tourism and gambling sectors, which are crucial for the local economy[54]. - The decrease in revenue was mainly attributed to the adverse economic environment in Macau, affecting construction and renovation projects[57]. Strategic Initiatives - The company aims to expand its market presence and enhance its service offerings in the coming years[18]. - The Group plans to continue expanding its existing business in the car park flooring and waterproofing sectors to strengthen its income stream[21]. - The company is actively seeking alternative business opportunities to diversify income sources and mitigate risks[21]. Corporate Governance - The Company has complied with the principles and applicable code provisions of the Corporate Governance Code for the year ended March 31, 2022[85]. - The Board is responsible for directing and supervising the Company's affairs, focusing on financial performance and overall strategies[91]. - The Board consists of three independent non-executive directors, representing at least one-third of the Board, ensuring independent judgment[101]. - The Company has taken out director and officer liability insurance to cover liabilities arising from legal action against the Directors[96]. - The Board has reviewed and discussed the corporate governance policies and compliance with the CG Code for the year ended March 31, 2022[113]. Human Resources - As of March 31, 2022, the Group had 45 employees, an increase from 37 employees in 2021, with total employee costs approximately HK$19.6 million, up from HK$16.0 million in 2021[74]. - General and administrative expenses increased by approximately HK$1.4 million to approximately HK$24.1 million for the year ended March 31, 2022, primarily due to increased staff salaries and the number of senior staff[65]. Internal Controls and Audits - The Group's internal control system has been reviewed, and no material inadequacies were found in risk management during the decision-making process[181]. - A staff member in the finance department conducts internal audits, reporting findings to the Audit Committee, ensuring compliance with relevant policies[182]. - The internal audit staff confirmed that the Group consistently complied with relevant policies and procedures during the year ended 31 March 2022[183]. - The Group's internal audit function has been reviewed, confirming adherence to policies and procedures, with no significant deficiencies identified in risk management[185]. Financial Position - As of 31 March 2022, the Group had cash and cash equivalents of approximately HK$23.9 million, down from approximately HK$34.6 million in 2021[69]. - The current ratio as of 31 March 2022 was approximately 2.2 times, compared to approximately 3.2 times at 31 March 2021[69]. - Total interest-bearing borrowings as of 31 March 2022 were approximately HK$15.9 million, an increase from approximately HK$10.0 million in 2021[69]. - The gearing ratio as of 31 March 2022 was approximately 13.5%, up from approximately 9.0% in 2021[69]. - Total assets as of 31 March 2022 were approximately HK$149.8 million, compared to approximately HK$129.9 million in 2021[69]. Board Committees - The Company has established four Board committees: audit committee, remuneration committee, nomination committee, and legal compliance committee, to oversee specific aspects of its affairs[131]. - The Audit Committee reviewed the Group's audited consolidated financial statements for the year ended March 31, 2022[144]. - The Remuneration Committee is responsible for recommending the remuneration policy and structure for Directors and senior management, ensuring alignment with market levels[146]. - The Company ensures that all Board committees have sufficient resources to perform their duties and can seek independent professional advice when necessary[132].
邝文记(08023) - 2022 - 年度财报