Financial Performance - The group's revenue decreased from approximately HKD 137.8 million in the previous year to about HKD 58.3 million, a decline of approximately 57.7%[9]. - The net loss for the reporting period was approximately HKD 18.8 million, compared to a net loss of about HKD 11.6 million in the previous year[10]. - The decrease in revenue was primarily due to a reduction in site formation and renovation works during the reporting period[20]. - The group's gross profit decreased by approximately HKD 2.0 million, or about 48.8%, to approximately HKD 2.1 million for the reporting period[22]. - Total revenue for the year ended April 30, 2022, was HKD 58,344,000, a decrease of 57.6% from HKD 137,781,000 in the previous year[195]. - Gross profit for the same period was HKD 2,054,000, down 50% from HKD 4,116,000 year-over-year[195]. - Operating loss increased to HKD 18,574,000 compared to HKD 11,556,000 in the prior year, reflecting a significant decline in profitability[195]. - The company reported a loss attributable to owners of HKD 18,778,000, which is a 62.3% increase from HKD 11,566,000 in the previous year[195]. - Basic and diluted loss per share was HKD 8.14, compared to HKD 6.23 in the previous year, indicating a worsening financial position[195]. - Total assets decreased to HKD 133,225,000 from HKD 155,998,000, representing a decline of 14.7%[200]. - Current liabilities decreased to HKD 32,123,000 from HKD 38,497,000, a reduction of 16.6%[200]. - The company's equity decreased to HKD 101,133,000 from HKD 117,569,000, reflecting a decline of 13.9%[200]. - Non-current assets, specifically property and equipment, dropped significantly from HKD 130,000 to HKD 37,000[200]. - Cash and bank balances decreased to HKD 9,945,000 from HKD 16,556,000, a decline of 40.3%[200]. Operational Challenges - The company anticipates continued challenges in its Hong Kong operations due to rising operational costs and intense market competition[13]. - The operational pressures include rising direct labor costs and subcontracting expenses[19]. - The impact of the COVID-19 pandemic on ongoing construction projects may affect profitability in the coming years[13]. Business Strategy and Expansion - The board is actively pursuing business expansion in other Asia-Pacific markets, including Japan, Thailand, and Singapore[13]. - The company aims to diversify its business scope by investing in potential properties for capital appreciation and generating stable rental income[13]. - The focus will remain on site formation and renovation works in Hong Kong while enhancing competitive advantages[19]. - The company is committed to increasing shareholder returns through business expansion and strategic investments[13]. Corporate Governance - The company is committed to maintaining good corporate governance practices, which are essential for effective management and business growth[52]. - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a strong independent element for independent judgment[58]. - The roles of the chairman and CEO are held by the same individual, which the board believes benefits the group's operations and management[53]. - The independent non-executive directors have confirmed their independence according to GEM listing rules, ensuring compliance and governance standards[58]. - The board regularly reviews its functions to ensure alignment with the group's needs and compliance with regulatory requirements[55]. - The company emphasizes transparency and accountability as critical components of its corporate governance framework[52]. - The board is responsible for guiding and supervising the group's affairs to promote successful development and growth[55]. - The board consists of five members, with three being female, promoting diversity in gender and professional background[60]. - The board diversity policy has been implemented and monitored annually by the nomination committee, achieving its objectives during the reporting period[61]. - A total of 12 board meetings were held during the reporting period, with significant decisions made only after thorough discussions[64]. - All directors confirmed compliance with the code of conduct regarding securities trading during the reporting period[63]. - The audit committee held six meetings during the reporting period, ensuring the effectiveness of internal controls and risk management systems[72]. - The audit committee reviewed the financial performance for the first quarter, interim results, and annual results up to April 30, 2022[72]. - The company has established three functional committees to assist the board in fulfilling its responsibilities, ensuring compliance with governance standards[69]. - All directors are encouraged to participate in continuous professional development to enhance their knowledge and skills[68]. - The independent non-executive directors have a term of three years, with provisions for termination and re-election[66]. - The remuneration committee held three meetings during the reporting period[77]. - The remuneration committee recommended compensation policies based on the group's performance and individual directors' contributions[81]. - The nomination committee conducted two meetings and reviewed the board's structure and diversity[85]. - The board confirmed that the internal control and risk management systems were effective and had been reviewed during the reporting period[92]. - The external auditor provided an independent opinion on the financial statements, confirming compliance with relevant accounting standards[90]. - The board's diversity policy was adopted and monitored regularly by the nomination committee[84]. - The board evaluated the performance of executive directors and recommended compensation adjustments accordingly[78]. - The company has no internal audit department but conducts annual reviews to assess the need for one[91]. - The board is responsible for overseeing the risk management and internal control systems[91]. - The company has implemented measures to improve its internal control and risk management systems based on external consultant recommendations[92]. Shareholder Engagement - The company has adopted a dividend policy aimed at allowing shareholders to share in profits while retaining sufficient liquidity for future development[111]. - The board will consider actual and expected financial performance, retained earnings, and capital requirements when deciding on dividend distribution[112]. - The annual general meeting is scheduled for October 28, 2022, providing a platform for direct communication between the board and shareholders[99]. - The company encourages shareholders to attend annual general meetings to foster effective communication[109]. - The company has a structured process for shareholders to propose inquiries and suggestions to the board[105]. Customer and Supplier Relationships - The group's revenue from contracts awarded by the Civil Engineering and Development Department and the Lands Department accounted for approximately 64.8% of total revenue for the year ended April 30, 2022[120]. - The largest and five largest customers contributed approximately 40.9% and 100.0% of total revenue, respectively, for the reporting period[124]. - The group maintained business relationships with most major customers for between one to ten years, indicating a sustainable business model[120]. - The procurement from the largest and five largest suppliers accounted for approximately 22.4% and 70.3% of total procurement, respectively, for the reporting period[124]. - The company did not face any significant difficulties in procuring materials or appointing subcontractors during the reporting period[122]. - The group has established an internal list of approved subcontractors to ensure quality and cost-effectiveness in project execution[122]. Employee and Compensation - The total employee costs for the reporting period were approximately HKD 4.7 million, significantly lower than approximately HKD 22.0 million for the year ended April 30, 2021[41]. - The company has a competitive compensation package to attract and retain employees, emphasizing the importance of employee contributions[123]. - The share options granted to employees include 1,920,000 options granted to 10 employees on April 8, 2021[163]. - On May 12, 2022, the group granted 23,040,000 share options to employees at an exercise price of HKD 0.389 per share[167]. Financial Assets and Liabilities - Cash and bank balances decreased by approximately HKD 6.7 million to about HKD 9.9 million as of April 30, 2022, compared to HKD 16.6 million as of April 30, 2021[30]. - The group's equity attributable to owners amounted to approximately HKD 101.1 million as of April 30, 2022, down from approximately HKD 117.6 million as of April 30, 2021[28]. - The debt-to-equity ratio increased to 13.8% as of April 30, 2022, from 11.7% as of April 30, 2021[32]. - As of April 30, 2022, the company's distributable reserves were approximately HKD 6.7 million, a decrease from approximately HKD 27.3 million in the previous year[138]. - The fair value of financial assets measured at fair value through profit or loss was HKD 21.2 million as of April 30, 2022[43]. - The group had no significant capital commitments or contingent liabilities as of April 30, 2022[39]. - No acquisitions or disposals of subsidiaries or associates occurred during the reporting period, and there are no plans for significant investments or capital assets[44]. Environmental and Social Responsibility - The company is committed to monitoring and minimizing its environmental impact, with an ESG report to be published within three months of the annual report[168].
泰锦控股(08321) - 2022 - 年度财报