Financial Performance - For the fiscal year ending March 31, 2022, the Group recorded total revenue of approximately HKD 275.6 million, a decrease of about 15.6% compared to HKD 326.7 million for the previous fiscal year[20]. - The Group reported a loss attributable to owners of the company of approximately HKD 36.4 million for the fiscal year, compared to a loss of approximately HKD 8.5 million in the previous year[20]. - The increase in net loss is primarily attributed to a decrease in gross profit and gross profit margin for the fiscal year ending March 31, 2022[20]. - The Group recorded a gross loss of approximately HK$23.9 million for the year ended 31 March 2022, compared to a gross profit of approximately HK$3.7 million for the year ended 31 March 2021, resulting in a gross loss margin of approximately 8.7%[51][54]. - Administrative and other operating expenses increased by approximately HK$0.5 million or 4.0% to approximately HK$12.3 million for the year ended 31 March 2022, primarily due to increased staff costs[56]. - Other income and gain decreased by approximately HK$366,000 to approximately HK$7,000 for the year ended 31 March 2022, mainly due to a decrease in bank interest income[56]. - Finance costs decreased by 42.3% to approximately HK$15,000 for the year ended 31 March 2022, down from approximately HK$26,000 for the previous year[56]. Market Conditions and Strategy - The ongoing COVID-19 outbreak has severely impacted the Hong Kong economy and construction industry, leading to cash flow disruptions and operational inefficiencies[25]. - The Group plans to implement a more prudent approach in project selection, focusing on well-established contractors to ensure project stability and healthy receivables[27]. - The Group aims to enhance its operating efficiency and profitability while expanding its fleet of machinery and equipment to improve technical capabilities for future projects[31]. - The Group is considering exploring business opportunities beyond the Hong Kong market to strengthen revenue bases and enhance future development[32]. - The Group's gross profit margin is under pressure due to competitive project pricing, affecting overall financial performance[39]. - The Group will continue to monitor market conditions closely and respond to changes to maintain its market share in the wet trades works industry[42]. Corporate Governance - The Company has adopted the Corporate Governance Code as per GEM Listing Rules and complied with its provisions during the year ended 31 March 2022[94]. - The Board is responsible for overseeing the Company's overall strategies and business performance, including financial performance and risk management[101]. - The Company has maintained liability insurance for Directors and senior management to cover legal liabilities arising from their duties[102]. - The independent non-executive Directors ensure impartial views on the Company's strategies and performance, and all possess appropriate qualifications[107]. - The Board Diversity Policy aims to achieve diversity among Board members[109]. - The Company has confirmed compliance with the trading standards for securities transactions by all Directors during the reporting period[100]. - The Board emphasizes high-quality governance practices to enhance corporate value and accountability to shareholders[99]. Board Composition and Committees - The Company has established three Board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, to oversee specific aspects of corporate governance[158]. - The Nomination Committee will disclose the composition of the Board annually in the corporate governance report[118]. - The Nomination Policy aims to ensure a balance of skills, experience, knowledge, and diversity of perspectives appropriate to the Company's business needs[120]. - The Audit Committee is composed of a minimum of three members, all of whom are independent non-executive Directors, ensuring compliance with GEM Listing Rules[167]. - The Company has provided training courses for Directors to ensure compliance with the current GEM Listing Rules[156]. Risk Management and Internal Controls - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[191]. - The Audit Committee reviewed the internal control systems and found them effective and adequate for the year ended March 31, 2022[192]. - The Board assessed the effectiveness of internal control systems based on the Audit Committee's reviews and concurred with their findings[193]. - The Company has no internal audit function as its internal control system has been deemed effective by the Audit Committee and the Board[194]. - The Company will review the need for an internal audit function on an annual basis[194]. Shareholder Engagement - Shareholders holding not less than one-tenth of the paid-up capital may requisition an extraordinary general meeting[183]. - Shareholders may send written enquiries to the Company regarding their rights[186]. - Separate resolutions are proposed at shareholders' meetings for substantial issues, including the election of individual Directors[183]. - All resolutions at shareholders' meetings will be voted by poll, with results posted on the Stock Exchange and the Company's website[183].
怡康泰工程集团(08445) - 2022 - 年度财报