Financial Performance - The group's revenue decreased by approximately 19.5% from about HKD 138.3 million in the year ended March 31, 2022, to about HKD 111.3 million in the year ended March 31, 2023[13]. - Gross profit fell by approximately 36.6% from about HKD 30.2 million to about HKD 19.1 million, with a gross profit margin declining from approximately 21.8% to 17.2%[13]. - The net loss attributable to the company's owners increased to approximately HKD 17.9 million from about HKD 3.6 million in the previous year[13]. - The decrease in revenue and gross profit margin was primarily due to ongoing adverse market competition conditions[13]. - The company's revenue decreased by approximately 19.6% to about HKD 111.3 million for the year ended March 31, 2023, compared to HKD 138.3 million in 2022, primarily due to a decline in residential interior design and renovation services[22]. - Revenue from residential interior design and renovation services was HKD 101.9 million, accounting for 91.6% of total revenue, while commercial services generated HKD 9.4 million, representing 8.4%[23]. - Direct costs decreased by approximately 14.8% to about HKD 92.1 million from HKD 108.1 million in the previous year, driven by the corresponding decrease in revenue[24]. - Other income increased from approximately HKD 1.3 million to about HKD 3.2 million, mainly due to non-recurring government subsidies related to the Employment Support Scheme[27]. - Financing costs rose by approximately 23.5% to about HKD 252,000, attributed to increased bank borrowing interest rates[31]. - The company recorded a loss attributable to owners of approximately HKD 17.9 million for the year ended March 31, 2023, compared to HKD 3.6 million in 2022[33]. Business Strategy and Outlook - The company anticipates continued demand for residential interior design services due to the government's housing supply strategy maintaining a 73:27 ratio of public to private housing over the next decade[14]. - The company plans to enhance brand marketing through mainstream and new media to attract new customers and strengthen its position in the interior design and renovation services industry[14]. - The company remains optimistic about the prospects for local interior design and renovation services despite challenges from financial market downturns and economic uncertainties[14]. - The company aims to improve customer experience and satisfaction by recruiting talented individuals, providing training, and enhancing management skills[14]. - The company plans to enhance sales and marketing efforts, recruit high-quality talent, and upgrade information systems to promote future growth[36]. - The company aims to expand its business coverage in Hong Kong to reach more potential customers, driven by the increasing affordability of housing among the public[19]. Financial Position and Management - As of March 31, 2023, the total unutilized net proceeds amount to approximately HKD 20.3 million, which is expected to be fully utilized by March 31, 2025[41]. - The company plans to allocate approximately HKD 0.5 million from the unutilized proceeds for upgrading its information systems by the end of the fiscal year ending March 31, 2025[41]. - The total debt as of March 31, 2023, is approximately HKD 9.6 million, an increase from HKD 5.1 million in 2022, primarily due to investments in life insurance contracts[45]. - The cash and bank balances as of March 31, 2023, are approximately HKD 34.5 million, down from HKD 57.7 million in 2022[45]. - The company's debt-to-equity ratio as of March 31, 2023, is approximately 46.4%, significantly higher than 13.3% in 2022[46]. - The group maintains a policy of regular monitoring of current and expected liquidity requirements to ensure sufficient cash reserves for both short-term and long-term needs[61]. - The company has no significant investments, acquisitions, or plans for capital assets as of March 31, 2023[48]. - The company maintains a prudent treasury policy to manage bank balances and ensure readiness for future growth opportunities[50]. - There are no significant contingent liabilities as of March 31, 2023, indicating a stable financial position[52]. Environmental, Social, and Governance (ESG) Initiatives - The group has implemented environmental protection measures, including wastewater discharge management and energy consumption control, in compliance with applicable Hong Kong environmental laws and regulations as of March 31, 2023[62][64]. - The group has committed to recycling and conservation principles, including initiatives like encouraging double-sided printing and reducing energy consumption by turning off idle lighting and appliances[62]. - The environmental, social, and governance (ESG) report details the group's activities and measures taken during the fiscal year ending March 31, 2023, compared to the previous year[69]. - The group emphasizes the importance of stakeholder engagement and the significance assessment in preparing the ESG report[75]. - The company aims to reduce its greenhouse gas emissions intensity by 5% by the fiscal year ending March 31, 2026, compared to the 2022 baseline[90]. - The company has set environmental goals related to greenhouse gas emissions, waste management, water usage, and energy consumption, which have been approved by the board[85]. - The company has implemented various energy-saving measures to control and reduce electricity consumption in its offices[92]. - The company actively engages with stakeholders to understand their concerns and improve its environmental, social, and governance performance[84]. - The company has established effective management policies and internal control systems regarding environmental, social, and governance matters[84]. - The company encourages the use of energy-efficient appliances and promotes energy-saving practices among employees[92]. - The company has not reported any significant violations of environmental laws and regulations that would have a major impact on its operations[86]. - The company is committed to enhancing employee awareness of environmental protection and compliance with relevant laws and regulations[85]. Employee Management and Development - As of March 31, 2023, the total number of employees is 38, unchanged from the previous year, with a gender distribution of 24 males and 14 females[127]. - The employee turnover rate for 2023 is approximately 23.68%, significantly higher than 12.66% in 2022[129]. - The turnover rate for male employees in 2023 is 25.53%, compared to 16.33% in 2022, while for female employees, it is 20.69%, up from 6.67%[129]. - The turnover rate for employees under 30 years old is 36.36% in 2023, a notable increase from 17.86% in 2022[129]. - The company has maintained a stable workforce with 37 full-time employees and 1 contract/temporary employee as of March 31, 2023[127]. - There were 0 reported work-related injuries in 2023, a decrease from 2 in 2022, with no loss of workdays due to injuries[137]. - The company has implemented a health and safety management system based on ISO 45001 to mitigate workplace risks[135]. - The employee gender ratio is approximately 1.71:1 in favor of males in 2023, compared to 1.53:1 in 2022[134]. - The company conducts regular performance reviews to assess employee performance and determine salary adjustments[129]. - The company is committed to providing equal employment opportunities and has a robust recruitment process based on merit[133]. - Approximately 59.57% of employees received training during the reporting period, down from 79.07% in 2022[142]. - The average training hours per employee were approximately 23.83 hours, compared to 25.30 hours in 2022[143]. - 100% of senior and middle management employees received training in 2023[142]. - The average training hours for male employees were 24.00 hours, while for female employees it was 23.53 hours in 2023[142]. Supplier and Community Engagement - The company has 144 suppliers in total, an increase from 108 in 2022, with 115 suppliers evaluated according to procurement practices[149]. - The number of suppliers in mainland China increased to 36 in 2023 from 17 in 2022[150]. - The company emphasizes the importance of environmental standards in supplier selection and regularly communicates with suppliers about eco-friendly products[151]. - The company has established a volunteer team of 20 members to provide free maintenance services to vulnerable groups, including the elderly and children[164]. - The company donated HKD 41,900 to the Chi Lin Nunnery and HKD 24,200 to the Lok Sin Fund Limited during the reporting period[164]. - The company aims to expand its charitable efforts in the future to meet community needs and create a favorable environment for its business[164]. Management Team - 温女士负责集团日常管理及人力资源，拥有超过17年的相关经验[196]. - 呂女士在审计、会计及公司秘书事务方面拥有超过14年的经验，担任审计委员会及薪酬委员会主席[194]. - 钟博士在银行业拥有超过37年的经验，曾任多家银行的高管[197]. - 朱博士拥有超过31年的工作经验，曾任香港特区政府效率促进办公室高级管理参议主任[199]. - 钟博士于2018年获得香港理工大学工商管理博士学位，具备丰富的学术背景[198]. - 温女士于2004年加入集团，逐步晋升至执行董事[196]. - 呂女士自2019年11月起为特许秘书及特许管治专业人员会员，具备专业资格[196]. - 钟博士自2021年起担任香港理工大学会计及金融学院专业应用教授（金融）[197]. - 朱博士于2015年获得香港理工大学工商管理博士学位，具备深厚的学术背景[199].
礼建德集团(08455) - 2023 - 年度财报