Financial Performance - The group's total revenue decreased by approximately HKD 24.5 million or 8.7% to about HKD 257.2 million for the year ended March 31, 2022, compared to approximately HKD 281.7 million for the previous year[10]. - Profit attributable to the company's owners dropped by approximately HKD 13.4 million or 62.6% to about HKD 8.0 million for the year ended March 31, 2022, down from approximately HKD 21.4 million[10]. - Revenue decreased from approximately HKD 281.7 million for the year ended March 31, 2021, to approximately HKD 257.2 million for the year ended March 31, 2022, a decline of about 8.7%[19]. - Gross profit decreased from approximately HKD 39.4 million for the year ended March 31, 2021, to approximately HKD 34.3 million for the year ended March 31, 2022, with a slight reduction in gross profit margin from about 14.0% to approximately 13.3%[22]. - Administrative expenses increased by approximately HKD 3.5 million or 28.0% from about HKD 12.5 million for the year ended March 31, 2021, to about HKD 16.0 million for the year ended March 31, 2022[27]. - Other income significantly decreased from approximately HKD 2.3 million for the year ended March 31, 2021, to approximately HKD 0.2 million for the year ended March 31, 2022[23]. - The adjusted profit for the year, excluding non-recurring items, decreased from approximately HKD 19.4 million for the year ended March 31, 2021, to approximately HKD 14.5 million for the year ended March 31, 2022, a reduction of about 25.3%[31]. - Financing costs increased by approximately HKD 0.5 million or 26.3%, from about HKD 1.9 million for the year ended March 31, 2021, to about HKD 2.4 million for the year ended March 31, 2022[29]. - Income tax expenses decreased by approximately HKD 2.0 million or 55.6%, from about HKD 3.6 million for the year ended March 31, 2021, to about HKD 1.6 million for the year ended March 31, 2022[30]. - The company's bank balance and cash increased to approximately HKD 51.3 million as of March 31, 2022, compared to HKD 33.3 million as of March 31, 2021[35]. - The company's total bank borrowings increased to approximately HKD 88.8 million as of March 31, 2022, from HKD 40.7 million as of March 31, 2021, resulting in a capital debt ratio increase from about 31.9% to 65.4%[35]. - The company did not recommend the payment of a final dividend for the year ended March 31, 2022, compared to a dividend of HKD 0.025 per share totaling HKD 2.0 million for the previous year[32]. - As of March 31, 2022, the company's distributable reserves, including share premium and retained earnings, are approximately HKD 20.3 million, down from HKD 23.4 million in the previous year[186]. Impact of COVID-19 - The COVID-19 pandemic significantly impacted the group, particularly due to strict government measures during the fifth wave of infections starting January 2022, affecting various business activities including construction[11]. - The group faced temporary manpower shortages and project delays due to the fifth wave of COVID-19 in Hong Kong, impacting the last quarter's revenue significantly[19][17]. - The company has implemented various measures to mitigate the impact of the pandemic on operations, including emergency planning and monitoring of the COVID-19 situation[16][17]. - The company remains cautiously optimistic about future business prospects, hoping for economic recovery as the pandemic stabilizes[11]. Business Strategy and Future Plans - The company plans to continue providing comprehensive services in maintenance, renovation, and site preparation, while also engaging in property investment under a new division in Hong Kong[11]. - The group plans to explore business and investment opportunities to enhance revenue sources and pursue larger projects in the future[18]. - The group secured 27 new projects with a total contract value of approximately HKD 395.6 million for the year ended March 31, 2022, compared to 30 projects valued at approximately HKD 340.6 million in the previous year[14]. Corporate Governance - The company is led by Mr. Leung Ka Ho, who serves as both Chairman and CEO, ensuring effective management and business development since 2002[52]. - The board consists of five members, including two executive directors and three independent non-executive directors, all of whom attended 100% of board meetings during the fiscal year ending March 31, 2022[67]. - The company has adhered to all applicable corporate governance codes during the fiscal year ending March 31, 2022[53]. - The board has implemented a diversity policy, considering various measurable criteria such as gender, age, and professional experience in its composition[63]. - The company emphasizes the importance of diverse board membership for enhancing performance quality[63]. - The board is responsible for overseeing corporate governance functions, including policy formulation and compliance with legal regulations[68]. - The company has established a code of conduct for directors regarding securities trading, with no violations reported during the fiscal year[54]. - The board regularly reviews its assigned duties and responsibilities to ensure effective governance and management oversight[59]. - The company held five board meetings and one annual general meeting during the fiscal year, with full attendance from all directors[67]. Risk Management - The company emphasizes the importance of risk management practices to effectively mitigate operational and financial risks[161]. - The company has established a risk management framework that includes a three-tier approach to identify, analyze, assess, mitigate, and respond to risks[90]. - The board believes that the risk management and internal control systems are effective and adequate as of March 31, 2022[87]. - The company has implemented appropriate procedures to protect its assets from unauthorized use or misappropriation[89]. - The company aims to maintain an effective internal control system to safeguard shareholder investments and group assets[87]. Environmental, Social, and Governance (ESG) - The company has complied with the environmental, social, and governance (ESG) reporting guidelines as per GEM listing rules, focusing on minimizing negative environmental impacts and creating stakeholder value[105]. - The board is responsible for the company's environmental, social, and governance (ESG) strategy and reporting, ensuring compliance with relevant regulations[176]. - The company has maintained the same ESG governance structure and processes as the previous year, responsible for setting goals and monitoring performance[107]. - The company has implemented emission control measures, including the use of ultra-low sulfur diesel and noise emission labeled machinery, with no significant non-compliance in emissions reported for the year ending March 31, 2022[109]. - Total greenhouse gas emissions increased from 73 tons in 2021 to 93 tons in 2022, representing a 27.4% increase[110]. - Total electricity consumption rose significantly from 38,844 kWh in 2021 to 63,056 kWh in 2022, a 62.2% increase[113]. - The company has implemented an environmental management system certified to ISO 14001 standards[113]. - The company has established a safety management system compliant with ISO 45001 standards[124]. Employee and Community Engagement - Employee turnover rate surged to 22% in 2022 from just 2% in 2021, indicating a significant increase in workforce instability[119]. - The company aims to attract and retain suitable personnel by offering competitive compensation packages and conducting annual reviews for salary increases and promotions[166]. - The company actively participates in community service and charitable donations, focusing on supporting education and environmental protection activities[136]. - Total training hours for female employees in project management increased from 40 hours in 2021 to 75 hours in 2022, while male employees' hours decreased from 523 hours to 702 hours[127]. - The company encourages employees to report any misconduct through a confidential whistleblowing policy[133]. Supplier and Customer Relations - The company maintains strong relationships with major customers, which is crucial for securing project bids and ensuring a stable number of projects[189]. - Stable business relationships with key suppliers and subcontractors are essential for timely delivery of materials and labor support[190]. - The company maintains a strict supplier evaluation process, ensuring that only approved subcontractors and suppliers with good quality and timely delivery records are selected[129]. - The company regularly reviews and updates its approved list of suppliers and subcontractors based on performance evaluations[190]. Compliance and Legal - The company has not encountered any significant or systemic non-compliance with relevant laws and regulations during the year[175]. - The company reported zero cases of non-compliance related to child labor and forced labor as of March 31, 2022[128]. - The company has a zero-tolerance policy towards corruption, with no reported violations of anti-corruption laws as of March 31, 2022[135].
CHI HO DEV(08423) - 2022 - 年度财报