Financial Performance - The Group recorded a turnover of approximately HK$57.7 million for the year ended 31 March 2022, representing a decrease of approximately 13.6% compared to the previous year[15]. - The Group incurred a loss of approximately HK$21.1 million, which included approximately HK$6.2 million from non-cash items such as allowances for expected credit loss and impairment of intangible assets[15]. - Revenue from design, fitting out, and engineering services decreased from approximately HK$36.8 million to approximately HK$33.8 million due to customer sentiment affected by the COVID-19 pandemic[16]. - Income from leasing construction equipment increased by approximately 54.7% to approximately HK$13.3 million compared to approximately HK$8.6 million in the previous year[17]. - The total revenue for the year ended March 31, 2022, was approximately HK$57.7 million, representing a decrease of about HK$9.1 million or 13.6% compared to the previous year[36]. - Revenue from the sourcing and merchandising of fine and rare wines decreased by approximately 51.5%, from HK$20.6 million in the previous year to HK$10.0 million[21]. - Gross profit for the year ended 31 March 2022 was approximately HK$9.9 million, a decrease of approximately 15.4% from HK$11.7 million in the previous year[43][46]. - The loss for the year was approximately HK$21.1 million, an increase of approximately HK$1.7 million compared to HK$19.4 million in the previous year[50][54]. - The revenue from public housing maintenance, improvement, and vacant flat refurbishment works amounted to approximately HK$15.8 million, representing a growth of approximately 135.8% compared to the previous year[56][59]. Impact of COVID-19 - The Group's operations were impacted by the COVID-19 pandemic, leading to delays and postponements of certain projects and affecting customer consumption[14]. - The overall economic slowdown and the erratic development of the COVID-19 pandemic have influenced the Group's performance[14]. - The Group's scaffolding equipment leasing business experienced a decline in lease-out rates in the last quarter due to project delays caused by the pandemic, but management is negotiating new projects to maintain lease rates[63]. - The management expects steady growth in rental income from the leasing of construction equipment once the COVID-19 pandemic stabilizes, positioning it as a major business segment in the coming years[64]. - The Group has implemented various health and safety measures in response to the COVID-19 pandemic, including mandatory mask-wearing and temperature checks at work sites[106]. - The Group encourages employee participation in the COVID-19 Vaccination Programme implemented by the Government of the HKSAR[106]. Business Strategy and Operations - The Group successfully bidded for new projects and explored new customers during the year[16]. - The Group continued to work on term contracts related to public housing refurbishment and maintenance subcontracting services[16]. - The Group expects leasing of construction equipment to be a sustainable income stream if the COVID-19 pandemic stabilizes, although a drop in rental income is anticipated in the coming quarter due to project delays[17]. - The Group is optimistic about the recovery of the economic condition in Hong Kong and plans to continue pursuing contracts in design, fitting out, engineering services, and construction equipment leasing[22]. - The Group is in negotiations for new term contracts and is seeking new contractors for both private and public sector projects[23]. - The Group is actively negotiating with contractors for new term contracts to expand operations in the design, fitting out, and engineering services business[58][59]. - The Group is actively negotiating with existing contractors to expand its project portfolio and enhance its brand reputation, aiming for sustainable revenue growth in the design and engineering services sector[60]. - The Group continues to focus on developing its core business while exploring other investment opportunities to broaden its revenue base[25]. Financial Position and Equity - As of March 31, 2022, the Group's net current assets were approximately HK$14.0 million, down from HK$25.0 million in the previous year, with cash and bank balances decreasing to HK$6.2 million from HK$16.7 million[71]. - The current ratio decreased to approximately 1.7 times as of March 31, 2022, from 2.4 times in the previous year, primarily due to reduced cash and bank balances[72]. - Total equity attributable to the owners of the Company decreased to approximately HK$72.4 million as of March 31, 2022, from HK$93.5 million in the previous year[73]. - The Group's gearing ratio increased to approximately 21.3% as of March 31, 2022, from 14.5% in the previous year, attributed to new lease liabilities and a drop in shareholder equity[74]. Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code to ensure proper regulation of business activities and decision-making processes[139]. - The company established an audit committee, a remuneration committee, a nomination committee, and a compliance committee in accordance with GEM Listing Rules[139]. - The role of chief executive has been vacant since February 21, 2020, but the division of responsibilities among directors has mitigated any material impact on operations[140]. - The company has complied with the Corporate Governance Code during the year ended March 31, 2022, except for the vacancy of the chief executive position[140]. - The board believes that incorporating good corporate governance elements can balance the interests of shareholders, customers, and employees[139]. - The Company has arranged appropriate insurance covering liabilities against Directors arising from corporate activities, reviewed annually[173]. - The Company ensures that newly appointed Directors receive comprehensive induction to understand business operations and their responsibilities[171]. - The Company complies with the CG Code regarding the separation of roles between the Chairman and CEO[169]. Human Resources - The Group employed 37 employees as of March 31, 2022, down from 43 in 2021, and continues to provide training to enhance workforce capabilities[94]. - All Directors participated in continuous professional development to enhance their knowledge and skills during the reporting period[172]. Environmental and Social Responsibility - The Group emphasizes environmental conservation and has implemented practices to comply with environmental legislation, with further details available in the Environmental, Social and Governance Report[108]. - The Group will periodically review its environmental practices and consider additional eco-friendly measures in its operations[109].
中新控股(08125) - 2022 - 年度财报