Business Operations - The company submitted 37 bids for construction projects during the year, amounting to approximately HKD 1,434,900,000[14] - The company has committed to two construction contracts in Guangxi Province, China, as part of its long-term strategy to integrate its construction business with the large Chinese market[9] - The company aims to maintain a prudent policy by only submitting bids with reasonable profit margins to mitigate operational risks[14] - The company has three active major projects and is following up on ten projects that were largely completed in previous years[14] - The company is exploring new business and investment opportunities through acquisitions or strategic partnerships beyond the construction sector[10] - The company has established a joint venture with two experienced construction firms in Sichuan, China, to bid for government construction projects[15] - The company anticipates increased supply of construction projects in the northern region of Hong Kong due to new government initiatives[14] Financial Performance - Revenue decreased by approximately 4.2% from HKD 138.7 million for the year ended June 30, 2021, to HKD 132.9 million for the year ended June 30, 2022, primarily due to a reduction in construction orders[17] - Direct costs decreased by approximately 9.1% from HKD 137.7 million to HKD 125.2 million, attributed to the decline in revenue and additional costs from a project in the previous year[18] - Gross profit increased approximately 7.7 times from HKD 1 million to HKD 7.7 million, with the gross profit margin rising from 0.7% to 5.8%[19] - Administrative expenses increased by approximately 24.7% from HKD 16.6 million to HKD 20.7 million, due to higher employee bonuses and maintenance costs[20] - The loss attributable to owners decreased to approximately HKD 12 million from HKD 22.5 million, mainly due to increased gross profit and reduced bad debts[22] - Cash and bank balances decreased to approximately HKD 39.2 million from HKD 54.8 million, while total assets decreased to approximately HKD 170.2 million from HKD 179.5 million[23] - The debt-to-equity ratio was approximately 4.2% as of June 30, 2022, compared to 3.9% the previous year, indicating a low level of debt relative to equity[26] Corporate Governance - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring strong independent elements for independent judgment[66] - The company has complied with the corporate governance code throughout the year ending June 30, 2022[63] - The board held a total of 10 meetings during the year ending June 30, 2022[68] - The independent non-executive directors have confirmed their independence according to GEM listing rules[67] - The company is committed to maintaining high corporate governance standards to enhance accountability and transparency for shareholders[61] - The board is responsible for formulating the overall strategy and monitoring management performance[64] - The company has established a compliance manual applicable to directors and employees[65] - The board has delegated certain responsibilities to the company's board committees for better governance[64] Risk Management - The risk management framework includes a dedicated risk management task force that identifies and assesses significant risks at least annually[101] - The board has conducted an annual review of the effectiveness of the risk management and internal control systems, ensuring they are adequate and effective[102] - The company has established a clear governance structure, policies, and procedures to assist in managing various operational risks[101] - The board is responsible for overseeing the design, implementation, and overall effectiveness of the risk management and internal control systems[102] Environmental, Social, and Governance (ESG) Initiatives - The company has established a governance team for environmental, social, and governance (ESG) matters to enhance its ESG governance[121] - The company is focused on sustainable development and integrating ESG factors into its business decisions[121] - The company has adhered to the "comply or explain" provisions of the ESG reporting guidelines issued by the Hong Kong Stock Exchange[119] - The company aims to reduce greenhouse gas emissions by 2% to 3% in the coming year[132] - Nitrogen oxide emissions from vehicles decreased from 0.85 kg in 2021 to 0.74 kg in 2022, a reduction of approximately 12.94%[134] - The company has implemented various construction methods to minimize dust pollution, effectively controlling it to acceptable levels[134] - The company has established multiple key policies regarding environmental matters to minimize emissions[132] - The company has engaged professional consultants to conduct carbon assessments based on guidelines from the Hong Kong Electrical and Mechanical Services Department[132] Employee Relations and Training - The company had a total of 43 full-time employees and 4 part-time employees at the end of the reporting period, with a gender distribution of 32 males and 15 females[158] - The employee turnover rate for males was 16%, resulting in 5 departures, while the turnover rate for females was 7%, resulting in 1 departure[162] - The company provided training to 100% of its employees, with a total training time of 137 hours, averaging 3 hours per employee[172] - The company has implemented a safety plan to promote occupational health and safety, ensuring compliance with applicable laws and regulations[167] - The company emphasizes equal opportunity in employment, supporting a non-discriminatory work environment[164] - The company has maintained a stable workforce with no significant violations of employment laws during the reporting period[165] Community Engagement - The company donated approximately HKD 1,248,300 during the reporting period, an increase from HKD 1,061,800 in 2021[190] - The company actively participates in community investment initiatives, focusing on environmental protection and support for disadvantaged groups[188]
宏强控股(08262) - 2022 - 年度财报