Financial Performance - For the fiscal year ending March 31, 2023, the total revenue increased by approximately HKD 9,100,000 or 241.5% to about HKD 15,600,000 compared to approximately HKD 6,500,000 for the fiscal year ending March 31, 2022[10]. - The net loss increased from approximately HKD 30,400,000 for the fiscal year ending March 31, 2022, to approximately HKD 33,200,000 for the fiscal year ending March 31, 2023, due to additional write-offs and provisions related to construction management services[10]. - The company's total revenue increased by approximately HKD 9,100,000 or 241.5% to about HKD 15,600,000 for the year ended March 31, 2023, compared to approximately HKD 6,500,000 for the previous year[20]. - The service costs rose by approximately HKD 7,300,000 or 250% to about HKD 12,100,000 for the year ended March 31, 2023, from approximately HKD 4,800,000 in the prior year[21]. - The gross profit increased by approximately HKD 1,900,000 or 215.9% to about HKD 3,500,000 for the year ended March 31, 2023, while the gross margin decreased from approximately 25% to about 22.3%[22]. - The net loss for the year ended March 31, 2023, was approximately HKD 33,200,000, compared to a net loss of approximately HKD 30,400,000 for the year ended March 31, 2022[28]. - Administrative expenses increased by approximately HKD 4,800,000 or 15.1% to about HKD 36,300,000 for the year ended March 31, 2023, due to additional write-offs related to contract assets and significant contract costs[24]. - Financing costs decreased by approximately HKD 310,000 or 57% to about HKD 410,000 for the year ended March 31, 2023, primarily due to the repayment of several loans[26]. Strategic Focus and Outlook - The company continues to focus on improving operational efficiency and implementing cost-cutting measures in response to ongoing challenges in the market[9]. - The company plans to actively explore fundraising activities to strengthen its balance sheet, as mentioned in announcements dated April 11, 2022, and January 12, 2023[9]. - The company expresses confidence in the long-term development despite anticipated global economic volatility and challenges[11]. - The company expects that many countries will adopt flexible monetary policies and fiscal stimulus measures to provide liquidity in response to economic downturns[11]. - The company remains optimistic about the medium to long-term recovery of the Chinese market, anticipating continued support from the central government through monetary policy and fiscal stimulus[11]. - The company anticipates confirming revenue of over HKD 12,000,000 from four construction management projects in Hong Kong within the next 18 to 24 months[14]. - The company plans to raise approximately HKD 18,420,000 through a rights issue to improve its financial position[14]. - The company aims to optimize its existing business and improve operational efficiency while exploring potential projects and investment opportunities in Hong Kong and China[13]. - The management remains optimistic about the medium to long-term business prospects in Hong Kong and Macau despite recent financial performance challenges[18]. Corporate Governance - The company has adhered to the corporate governance code as per the GEM Listing Rules during the reporting period ending March 31, 2023[52]. - The board consists of ten directors, including five executive directors, one non-executive director, and four independent non-executive directors[58]. - The roles of the chairman and the CEO have been separated since December 23, 2022, with Mr. Wang Lun as chairman and Mr. Shu Zhongwen as CEO[53]. - The company has implemented sufficient measures to ensure absent directors are informed of shareholder opinions following the annual general meeting held on September 30, 2022[54]. - The company has appointed independent non-executive directors, ensuring at least one possesses appropriate professional qualifications and expertise in accounting or related financial management[60]. - The board is responsible for reviewing and supervising the training and continuous professional development of directors and senior management[57]. - The company has committed to enhancing its corporate governance practices to align with the latest developments[57]. - The company has reported compliance with all applicable provisions of the corporate governance code during the reporting period[55]. - The company has undergone several changes in its board composition, including the appointment and resignation of various directors throughout the reporting period[61]. - The company aims to maintain high standards of corporate governance to ensure competitiveness and sustainable development[57]. - The board consists of 7 male directors and 3 female directors, achieving a gender diversity ratio of 70% male and 30% female as of March 31, 2023[68]. - The company has implemented measurable goals for board diversity, all of which were achieved by the end of the fiscal year on March 31, 2023[69]. - The board held five meetings during the fiscal year ending March 31, 2023, to approve financial performance and review corporate governance compliance[72]. - The company has renewed service agreements with two executive directors for a period of three years from May 26, 2023, to May 25, 2026[75]. Employee and Workplace Practices - The employee gender ratio stands at 63.6% male and 36.4% female, reflecting the company's commitment to diversity in hiring practices[68]. - The board diversity policy was revised in December 2018 to ensure a balanced composition that supports business strategy execution[67]. - The company emphasizes merit-based recruitment while considering measurable factors such as gender, age, and cultural background[68]. - The board has established a framework for regular reviews of its diversity policy to ensure ongoing effectiveness[67]. - The board of directors will be re-elected at the upcoming annual general meeting, with five directors eligible for re-election[76]. - The audit committee held five meetings during the year ending March 31, 2023, to review financial performance and compliance with governance codes[82]. - The remuneration committee convened once during the year to review the remuneration structure for directors[83]. - The nomination committee assessed the independence of non-executive directors and reviewed the board's structure and composition[88]. - The company has adopted a nomination policy to enhance the nomination process and guide the selection of board members[87]. - The company emphasizes continuous professional development for directors, ensuring they stay updated on business and regulatory matters[78]. - The audit committee is responsible for advising on the appointment and removal of external auditors and reviewing financial statements[81]. - The remuneration committee's main role is to provide recommendations on the overall remuneration policy for directors and senior management[83]. - The company has confirmed no violations of the securities trading code by directors for the year ending March 31, 2023[77]. - The company is committed to maintaining high standards of corporate governance and compliance with GEM listing rules[80]. - The company appointed Mr. Li Guanxian as CFO and company secretary on July 5, 2021, with a background in major accounting firms and banks[89]. - The audit committee reviewed the audited consolidated financial statements for the year ended March 31, 2023, and recommended their approval to the board[99]. - The external auditor, Zhongzheng Tianheng, was recommended for reappointment at the upcoming annual general meeting[99]. - The company reported audit fees of HKD 400,000 for the fiscal year 2023, an increase from HKD 360,000 in fiscal year 2022[100]. - The company emphasizes the importance of effective internal controls and risk management to protect shareholder interests[93]. - The company has established a dividend policy aimed at providing stable and sustainable returns to shareholders[97]. - The next annual general meeting is scheduled for September 29, 2023, with a notice to be sent at least 20 business days in advance[101]. - The company has implemented a shareholder communication policy to facilitate two-way communication with shareholders[103]. Environmental, Social, and Governance (ESG) Practices - The company has established a governance framework for environmental, social, and governance (ESG) issues, ensuring alignment with strategic growth and promoting integration into business operations[119]. - The board of directors is responsible for overseeing the company's ESG strategies and reports, managing related risks, and ensuring compliance with relevant laws and regulations[120]. - The company emphasizes the importance of effective operational management and setting achievable goals to address environmental protection risks and opportunities[117]. - The company has adopted a whistleblowing policy to provide a confidential reporting channel for employees and external parties regarding financial reporting and misconduct[110]. - The company has implemented an anti-corruption policy, ensuring that all employees act with integrity and report any suspected bribery or corruption[112]. - The company maintains ongoing communication with shareholders through various channels, including annual general meetings and regular announcements[109]. - The company is committed to enhancing its sustainability performance in areas such as labor practices, environmental protection, and supply chain management[118]. - The company has a structured approach to collecting and analyzing ESG data, prioritizing issues, and monitoring performance against set goals and indicators[120]. - The group aims to invest more resources in sustainability, focusing on resource efficiency and carbon reduction to protect the planet[124]. - The group emphasizes the importance of stakeholder communication, engaging with shareholders, customers, employees, and regulatory bodies to align on environmental, social, and governance (ESG) issues[131]. - The group has identified key ESG issues, with high importance placed on workplace safety and product quality, while issues like waste management and child labor are considered of lower significance[133]. - The group adheres to the ESG reporting guidelines set by the Hong Kong Stock Exchange, ensuring compliance and transparency in its operations[125]. - The group is committed to reducing its environmental impact and has implemented policies to ensure sustainable and eco-friendly operations in its construction and management services[134]. - The group has established effective management policies and internal controls for ESG issues, confirming that disclosed content meets reporting guidelines[133]. - The group recognizes the need for a quality work environment and prioritizes employee health and safety in its operations[124]. - The group maintains a focus on fair procurement practices and promoting environmentally friendly products within its supply chain[133]. - The group has a structured approach to stakeholder engagement, utilizing various communication channels to address concerns and expectations[131]. - The group is dedicated to continuous improvement in its ESG performance, aiming to create greater value for the community[131]. Environmental Impact and Compliance - Scope 2 indirect emissions (electricity) increased by 20.6% from 15.70 tons to 18.94 tons[136]. - Total emissions rose by 20.6% from 15.73 tons to 18.97 tons[136]. - The company has implemented clear division of responsibilities among departments for environmental control and monitoring energy consumption[135]. - No significant violations of environmental laws and regulations were reported during the reporting period[138]. - The company has established a waste management hierarchy to prioritize avoidance, reduction, recycling, and proper disposal of construction waste[143]. - Measures have been taken to minimize greenhouse gas emissions during construction activities, including dust control and proper waste management[139]. - The company actively monitors noise levels during construction to comply with local regulations and has not received any public complaints[142]. - Wastewater generated during construction is collected, filtered, and reused on-site, adhering to local pollution control regulations[144]. - The company encourages employees to reduce water usage and waste generation in the office[146]. - The company believes it has fulfilled its responsibilities towards social and environmental improvement through strict measures and implementation[147]. - The Hong Kong office consumed 43,000 kWh of electricity during the reporting period, slightly higher than the previous period due to increased project work[151]. - Water consumption in the office totaled 33 cubic meters, up from 30 cubic meters in the previous year, highlighting the company's commitment to responsible water usage[151]. - The company encourages employees to minimize paper usage by utilizing electronic methods and recycled paper, reflecting its commitment to sustainability[152]. - The company actively monitors and manages waste emissions, wastewater, and solid waste to comply with environmental laws and regulations[155]. - The company has developed a climate change policy and conducted assessments to identify and mitigate potential climate-related risks affecting its operations[159]. - The company is aware of the increasing frequency and severity of extreme weather events, which may disrupt construction projects and operations[159]. - The company regularly monitors existing and emerging trends, policies, and regulations related to climate change to mitigate legal and reputational risks[162]. - The company aims to enhance transparency in its environmental, social, and governance reporting to build trust with investors and clients[163]. - The company is exploring the development of more green building services to attract investors and clients focused on climate change[163]. Employee Development and Training - As of March 31, 2023, the total number of employees remained stable at 11, with a gender ratio of 1:2.75, an increase of 200% compared to the previous year[169]. - The number of office employees, including executive directors and senior management, increased by 16.7% from 6 to 7[169]. - Employee performance evaluation and promotion systems are in place to ensure fair opportunities for all employees[167]. - The company adheres to the Employment Ordinance and Employee Compensation Ordinance, ensuring all employees receive various benefits without any employment disputes[171]. - The company has not reported any significant health and safety violations in the past year, maintaining a goal of zero injuries and fatalities[175]. - The company actively supports employee development by funding participation in relevant internal and external training programs[176]. - The company emphasizes a diverse and inclusive workplace, with a commitment to preventing discrimination and harassment[172]. - The employee recruitment process is based on operational needs and business growth, ensuring a fair selection process[167]. - The company has implemented measures to enhance employee health and safety, including regular safety audits and health awareness activities[175]. - The management structure remains stable, indicating a phase of seeking potential business growth opportunities[169]. - The company provided training for 11 employees during the reporting period, totaling 80 hours, compared to 41 hours for the previous fiscal year[179]. - The percentage of employees receiving training increased to 90.9% from 81.8% in the previous fiscal year[179]. - Training hours by employee level: general staff received 8 hours, middle management 16 hours, and senior management 56 hours[179]. - The company plans to continue investing more resources in employee training and development to keep staff updated on market changes and demands[180]. - There were no significant safety issues or major labor disputes reported during the past 12 months[181]. Supplier and Product Quality Management - The company evaluated approximately 60 key suppliers and subcontractors, slightly decreasing from the previous year[188]. - The company ensures that suppliers meet required standards, including financial stability and social responsibility[188]. - No major issues or supply shortages were reported from suppliers during the reporting period[188]. - The company adheres strictly to relevant laws and regulations to provide high-quality services[189]. - The company maintains a transparent procurement process and regularly assesses suppliers to ensure compliance with ethical standards[185]. - The final products of the group are completed water circulation systems, which are subject to strict government regulation and independent oversight during planning, design, and construction phases[190]. - The group emphasizes high product quality and consistency as crucial for maintaining professionalism and expanding market share[190]. - There were no quality claims against the group's products and services that adversely affected the business during the reporting period[192]. - The group has not faced any intellectual property infringement cases during the reporting period[194]. - The group has implemented policies to ensure the confidentiality and protection of sensitive data related to projects and business partners[195]. - There were no significant customer complaints or government investigations that could negatively impact the business during the reporting period[196]. - The group has maintained compliance with safety, health, and fire regulations, with no safety issues reported by the Hong Kong Fire Services Department[199]. - The group adopts a zero-tolerance policy towards bribery, extortion, fraud, and money laundering, with no corruption complaints reported during the reporting period[200].
浩柏国际(08431) - 2023 - 年度财报