Financial Performance - The company recorded revenue of approximately HKD 98.2 million for the fiscal year 2023, representing a 30.2% increase from approximately HKD 75.4 million in fiscal year 2022[7]. - The company achieved a net profit of approximately HKD 2.4 million in fiscal year 2023, a turnaround from a net loss of approximately HKD 3.0 million in fiscal year 2022, primarily due to a recovery of trade receivables impairment loss of approximately HKD 1.2 million[7]. - The increase in revenue was mainly driven by higher rental income from new tower cranes and an increase in the utilization rate of existing tower cranes[7]. - The company's revenue for the fiscal year 2023 increased by approximately 30.2% to about HKD 98.2 million, up from approximately HKD 75.4 million in fiscal year 2022, primarily due to rental income from new tower cranes and an increase in the rental rate of existing tower cranes[19]. - Gross profit rose by approximately 35.7% to about HKD 25.6 million in fiscal year 2023, with a stable gross margin of approximately 26.0% compared to 25.0% in fiscal year 2022[21]. - The cost of sales and services for fiscal year 2023 was approximately HKD 72.7 million, representing an increase of about 28.4% from approximately HKD 56.6 million in fiscal year 2022, consistent with the revenue growth[20]. - Other income increased significantly to approximately HKD 974,000 in fiscal year 2023 from HKD 72,000 in fiscal year 2022, mainly due to income from the anti-epidemic fund and foreign exchange gains[22]. - Administrative expenses increased to approximately HKD 21.8 million in fiscal year 2023 from HKD 16.6 million in fiscal year 2022, primarily due to performance bonuses paid to directors and employees[23]. - Financing costs rose by approximately 65.5% to about HKD 1.7 million in fiscal year 2023, up from HKD 1.0 million in fiscal year 2022, driven by increased interest on bank loans and lease liabilities[24]. - The company recorded a profit of approximately HKD 2.4 million in fiscal year 2023, a turnaround from a loss of approximately HKD 3.0 million in fiscal year 2022, attributed to reduced impairment losses and increased rental income[25]. Business Strategy and Growth - The company plans to explore other potential investment opportunities to diversify its business and create new revenue streams[9]. - The company is confident that the demand for tower cranes will remain strong in the coming years, driven by the increasing applications for public housing in Hong Kong[13]. - The company is actively seeking other business opportunities in the Hong Kong construction industry to create sustainable returns for shareholders[16]. - The company has expanded its business by purchasing more tower cranes to meet the growing demand in the housing construction sector[13]. - The company has purchased six tower cranes to diversify its revenue sources and capture market demand in the tower crane rental service[42]. - The company has allocated HKD 42.4 million from the net proceeds to diversify its revenue sources and capture market demand in the tower crane rental service[44]. Shareholder Value and Capital Management - The company repurchased a total of 24,000,000 shares during the fiscal year 2023, with a total cost of HKD 6.26 million, enhancing shareholder value[40]. - The net proceeds from the share issuance amounted to approximately HKD 53.3 million, with all funds allocated as planned by March 31, 2023[44]. - As of March 31, 2023, the company's cash and cash equivalents were approximately HKD 14.2 million, down from HKD 30.4 million in fiscal year 2022, indicating a decrease in liquidity[27]. - The company's debt-to-equity ratio increased to approximately 26.5% as of March 31, 2023, compared to 25.2% in fiscal year 2022, primarily due to an increase in interest-bearing liabilities[28]. Corporate Governance - The company has a board of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors, responsible for overall management and business operations[46]. - The board confirmed compliance with all applicable laws and regulations in Hong Kong that have a significant impact on the company as of the report date[80]. - The company has established long-term business relationships with several clients, some exceeding 10 years[77]. - The company has maintained sufficient public float as required under GEM listing rules throughout the fiscal year 2023[130]. - The company has complied with all applicable corporate governance code provisions as outlined in the GEM listing rules for the fiscal year 2023[133]. - The company emphasizes the importance of good corporate governance elements in its management structure, internal controls, and risk management processes[144]. - The board consists of seven directors, with non-executive and independent non-executive directors making up over 70% of the board members[150]. - The company has at least three independent non-executive directors, meeting GEM listing rules requirements[153]. - The independent auditor for the fiscal year ending March 31, 2023, was Tianzhi Hong Kong CPA, who will be proposed for reappointment at the upcoming annual general meeting[140]. Employee Management and Development - The company has retained two general technicians and one sales manager to support the operations of the tower crane rental business[42]. - The company’s management emphasizes the importance of employee development through competitive compensation and training opportunities[76]. - The company conducted regular employee evaluations to assess performance and ensure competitive compensation[38]. - As of March 31, 2023, the company employed 37 full-time employees, with employee costs amounting to approximately HKD 26.1 million, an increase from HKD 17.7 million in the previous fiscal year[38]. Risk Management - The board is responsible for the risk management and internal control systems, ensuring they are effective in identifying and mitigating potential risks[195]. - The company has established and implemented risk management procedures to identify, assess, and manage significant risks, with regular internal control assessments conducted[196]. - The board believes that the group's risk management and internal control systems are adequate and effective, covering financial, operational, compliance, and risk management controls[196]. Compliance and Regulatory Matters - The company has received annual confirmations from its controlling shareholders regarding compliance with the non-competition agreement[122]. - The company has implemented appropriate insurance for directors' liability as part of its governance practices[125]. - All independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules[90]. - The company has no knowledge of any other individuals or entities holding interests that require disclosure under the Securities and Futures Ordinance as of March 31, 2023[101].
兴铭控股(08425) - 2023 - 年度财报