Financial Performance - The Group's turnover from design, fitting out, and engineering services increased from approximately HK$33.8 million in the previous year to approximately HK$45.9 million in the current year, indicating a growth of about 36.2%[16]. - Income from leasing construction equipment and related installation services decreased to approximately HK$6.8 million from approximately HK$13.3 million last year, representing a decline of about 48.9%[17]. - Turnover from the sourcing and merchandising of fine and rare wines amounted to approximately HK$2.5 million, down from approximately HK$10.0 million last year, reflecting a decrease of about 75%[18]. - The total revenue for the year ended March 31, 2023, was approximately HK$55.8 million, representing a decrease of about HK$1.9 million or 3.3% compared to the previous year[32][34]. - Revenue from design, fitting out, and engineering services increased to approximately HK$45.9 million from HK$33.8 million, marking an increase of about 36%[36][38]. - Revenue from leasing construction equipment decreased to approximately HK$6.8 million from HK$13.3 million, a decline of about 49%[36][38]. - Revenue from wine merchandising dropped to approximately HK$2.5 million from HK$10 million, a decrease of about 75%[36][38]. - The gross profit for the year was approximately HK$2.1 million, down from HK$9.9 million, representing a decrease of about HK$7.8 million[39][40]. - The Group recorded a loss for the year of approximately HK$24.6 million, an increase of approximately HK$3.5 million from the previous year's loss of HK$21.1 million[50]. - The gross profit of the Group decreased by approximately HK$7.8 million, primarily due to declines in the design, fitting out, and engineering services, as well as leasing of construction equipment[43]. Market Conditions - The Group's operations have been affected by the COVID-19 pandemic, leading to delays and postponements of certain projects, as well as changes in customer consumption sentiment[15]. - The overall business environment remains challenging due to increased competition in the industry[15]. - The economic recovery in Hong Kong is slow, impacting the Group's operational results[15]. - The Group anticipates that leasing construction equipment will become a sustainable income stream post-COVID-19 normalization[17]. - The demand for scaffolding equipment is expected to increase as the economic conditions improve, leading to more contracts/orders anticipated in the near future[24][28]. - The Group is optimistic about the recovery of the economic condition in Hong Kong and aims to secure more contracts in design and engineering services as well as construction equipment leasing[22][27]. Strategic Focus - The Group continues to focus on sustainable income streams, particularly from term contracts related to public housing refurbishment and maintenance services[16]. - The Group's strategic resource reallocation has prioritized design, fitting out, and engineering services over other business segments[18]. - The Group continues to seek new contracts and maintain relationships with existing customers to enhance its design, fitting out, and engineering services[56]. - The Group expects steady growth in revenue from public housing maintenance and refurbishment services, contributing to long-term income sustainability[56]. - The Group aims to broaden its income stream and strengthen sustainable development through strategic exploration and contractor negotiations[58]. Risk Management - The Group faces multiple risks and uncertainties that could impact its financial condition and operational performance, including business and operational risks[120]. - The Group's management is aware of potential future risks that may not be material now but could become significant later[120]. - The Group has established comprehensive money lending policies to ensure risk management and safeguard shareholders' interests[79]. - The Group's financial risk management policies are detailed in note 6(b) of the consolidated financial statements, indicating a structured approach to managing financial uncertainties[117]. Corporate Governance - The Company has complied with the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules for the year ended March 31, 2023[145]. - The Company has established an audit committee, a remuneration committee, a nomination committee, and a compliance committee with specific written terms of reference[145]. - The Board currently comprises two executive Directors and three independent non-executive Directors[153]. - The principal function of the Board is to consider and approve the overall business plans and strategies of the Group[154]. - The Company has put in place internal policies to ensure compliance with the Corporate Governance Code[149]. - The Board will review the current structure and appoint a chief executive if a suitable candidate is identified[146]. Employee and Remuneration Policies - Total remuneration for the year ended March 31, 2023, was approximately HK$11.2 million, a slight decrease from HK$12.5 million in 2022[110]. - The Group's remuneration policies are based on individual performance and are reviewed regularly, with discretionary bonuses provided based on profitability[195]. - The Share Option Scheme was adopted to provide employees and directors with an opportunity to obtain equity interest in the Company[196]. - Details of the annual remuneration of senior management by band for the year ended March 31, 2023, were provided, emphasizing performance-based compensation[199]. - The Group employed 34 employees as of March 31, 2023, down from 37 in 2022, and continues to provide regular training to enhance workforce capabilities[109]. Environmental and Health Measures - The Group emphasizes environmental conservation and has implemented practices to comply with environmental legislation, as discussed in the Environmental, Social and Governance Report[118]. - The Group plans to periodically review its environmental practices and consider further eco-friendly measures in its operations[119]. - The Group has implemented various health and safety measures in response to the COVID-19 pandemic, including mandatory temperature checks and requiring negative test results from staff[115]. - The Group has established a comprehensive approach to health education regarding COVID-19 at its offices and worksites[123].
中新控股(08125) - 2023 - 年度财报