Financial Performance - The Group's revenue for the Reporting Period decreased by approximately HK$62.2 million, or approximately 27.7%, from approximately HK$224.8 million for the year ended 31 March 2021 to approximately HK$162.6 million for the Reporting Period[21]. - The Group recorded a gross profit of approximately HK$44.5 million for the Reporting Period, representing a decrease of approximately 30.7% compared to approximately HK$64.2 million for the year ended 31 March 2021[21]. - Net profit of the Group decreased to approximately HK$7.9 million for the Reporting Period, down from approximately HK$32.0 million for the year ended 31 March 2021[21]. - The Group's revenue for the Reporting Period decreased by approximately HK$62.2 million or 27.7% to approximately HK$162.6 million compared to approximately HK$224.8 million for the year ended March 31, 2021[36][38]. - Gross profit for the Reporting Period was approximately HK$44.5 million, representing a decrease of approximately HK$19.7 million or 30.7% from approximately HK$64.2 million for the previous year[36][38]. - Net profit for the Reporting Period amounted to approximately HK$7.9 million, down from approximately HK$32.0 million in the previous year[37][39]. - The Group's operational efficiencies and cash flows were adversely affected by COVID-19 measures, leading to diminished tendering opportunities since January 2022[68]. - The business environment is expected to be challenging in the coming year due to COVID-19 impacts, supply chain disruptions, and inflated costs[30][33]. - The Group's capital expenditure for the Reporting Period was approximately HK$0.9 million, down from approximately HK$1.9 million in the previous year, reflecting a focus on essential acquisitions[97]. - The Group's commitment to long-term sustainability in Hong Kong is reflected in its pursuit of opportunities in emerging markets[23]. Operational Challenges - The ongoing COVID-19 pandemic significantly disrupted the construction industry, affecting operational efficiencies and project delivery progress due to stringent anti-pandemic measures[22]. - The Group's business performance has been adversely affected by a shortage of qualified staff due to the pandemic and market conditions[22]. - The disruption of supply chains and rising material costs have been key challenges faced by the Group during the Reporting Period[22]. - The Group's operational efficiencies and cash flows were adversely affected by COVID-19 measures, leading to diminished tendering opportunities since January 2022[68]. - Administrative expenses increased by approximately 2.7% from approximately HK$40.6 million for the year ended March 31, 2021, to approximately HK$41.7 million for the Reporting Period, primarily due to increased costs related to COVID-19 measures[92][99]. Business Development and Strategy - The Group is actively developing e-Payment technology solutions targeted at retail markets and has established a new subsidiary for this purpose during the Reporting Period[23]. - The Group is participating in tendering projects for consultancy services on electric vehicle charging-enabling infrastructure (EVCEI) and plans to undertake more projects under the EV-charging at Home Subsidy Scheme (EHSS), which has been extended to 2028 with an injection of HK$1.5 billion[23]. - The Group aims to diversify its business and expand its clientele despite the difficult market conditions[23]. - The Group plans to invest HK$1.5 billion in the EV Charging Easy Subsidy Scheme, extending it to 2028, to diversify its business in the emerging market of electric vehicle infrastructure[26]. - The Group is exploring opportunities related to the installation of electric vehicle charging infrastructure, anticipating continued growth in the electric vehicle market due to government initiatives[80]. Tendering and Contracts - The Group submitted 355 tenders and quotations during the Reporting Period, an increase from 339 in the previous year, with 120 contracts awarded compared to 135 in the prior year[42]. - Outstanding contracts in hand as of March 31, 2022, were valued at approximately HK$549.8 million, up from approximately HK$356.5 million in the previous year[42]. - The Group submitted 355 bids and proposals during the Reporting Period, an increase from 339 in the previous year, and was awarded 120 contracts, down from 135 in the previous year[80]. Revenue Breakdown - Revenue from the Transportation Mission Critical System Solutions segment was approximately HK$34.0 million, down from approximately HK$50.2 million in the previous year[44]. - Revenue from Mobile Ticketing and Digital Payment Solutions amounted to approximately HK$26.3 million, a decrease from approximately HK$37.9 million in the previous year[50]. - Revenue from Digital Fabrication and Maintenance Services was approximately HK$32.2 million, down from approximately HK$40.7 million in the previous year[52]. - The M&E Technology Solutions and Engineering Services segment generated revenue of approximately HK$67.8 million, a decrease from approximately HK$92.9 million in the previous year[60]. - Revenue from Sales of Products, Parts, and Components was approximately HK$2.3 million, down from approximately HK$3.1 million in the previous year[62]. Management and Governance - The Group's executive directors have extensive experience in the M&E engineering industry, with a focus on strategic planning and operational management[139][143]. - The Group's chairman, Mr. KM Luk, has over 50 years of experience in the industry, emphasizing the importance of leadership in navigating market challenges[140]. - The Group's founder and Executive Director, Mr. Luk Kwai Lung, has over 50 years of experience in the electromechanical engineering industry, focusing on automatic toll collection systems and railway traffic monitoring systems[147]. - The Group emphasizes risk management, with multiple members of the management team serving on the Risk Management Committee[150]. - Mr. Lau has extensive experience in financial management and corporate governance, having held key positions in various listed companies[162]. Financial Position and Liquidity - The Group had approximately HK$92.0 million in bank balances and cash as of March 31, 2022, a decrease of approximately HK$21.9 million compared to approximately HK$113.9 million as of March 31, 2021[95]. - The Group maintained a healthy liquidity position throughout the reporting period, with a focus on credit risk assessment to mitigate financial exposure[128]. - The Group did not have any capital commitments as of March 31, 2022, consistent with the previous year[132]. - The Group has pledged certain amounts of bank deposits and investments in life insurance policies to secure general bank financing as of March 31, 2022[131]. Future Outlook - The Group anticipates continued growth in the EV market, supported by an additional HK$1.5 billion allocated by the government to extend the EHSS until 2027-28[75]. - The Group will continue to monitor the pandemic's impact on financial performance and operations, especially with the risk of new outbreaks[79].
高萌科技(08065) - 2022 - 年度财报