Company Overview - Sanbase Corporation Limited is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange under stock code 8501[1]. - The company has a board of directors comprising executive and independent non-executive members, including Mr. Wong Sai Chuen as Chairman and CEO[13]. - The company is subject to the GEM Listing Rules, which require accurate and complete information disclosure[6]. - Sanbase Corporation Limited's compliance officer and company secretary is Dr. Sung Tak Wing, Leo, ensuring adherence to regulatory requirements[15]. - The principal bankers for the company include The Hongkong and Shanghai Banking Corporation Limited and Bank of China (Hong Kong) Limited, indicating strong banking relationships[15]. Financial Performance - The annual report includes a consolidated statement of profit or loss and other comprehensive income, detailing the company's financial performance[10]. - Total revenue for the year decreased by approximately 14.2%, from HKD 481,286,000 in 2021 to HKD 413,122,000 in 2022[40]. - The Group experienced a loss before income tax of HKD 6,833,000, compared to a loss of HKD 953,000 in the previous year, representing a 617.0% increase in loss[40]. - Basic and diluted loss per share was HKD (2.90) in 2022, compared to earnings of HKD 0.20 in 2021, highlighting a significant downturn in profitability[40]. - The gross profit margin slightly improved to 5.5% in 2022 from 5.4% in 2021, indicating better cost management[40]. - Gross profit for the year was HKD 22.7 million, down 12.0% from HKD 25.8 million recorded last year[48]. - The loss attributable to owners of the Company was HKD 5.7 million, compared to a profit of HKD 0.4 million in the corresponding period of last year[49]. Revenue Breakdown - Revenue from the restacking business remained stable, indicating consistent market demand despite overall revenue decline[25]. - The design business revenue increased by more than four times during the year, reflecting a rebound after previous adjustments[25]. - The Group's PRC subsidiary reported a revenue growth of 91.2% year-on-year, demonstrating improved service quality and customer recognition[31]. - Revenue from bare shell fit-out decreased by 31.1% to HKD 172.1 million, contributing 41.7% of total revenue for the year[58]. - Revenue from restacking was HKD 200.1 million, accounting for 48.4% of total revenue, showing a slight decrease from the previous year[57]. Operational Challenges - The pandemic led to postponements of certain projects due to strict COVID-19 quarantine measures in Hong Kong and some PRC cities[47]. - The Group lowered bidding prices to secure a higher chance of success in project tenders during the challenging economic environment[47]. - The Group's operations may be affected by public health incidents, which could slow down project progress[111]. - The Group's performance analysis by operating segment is provided in note 5 of the consolidated financial statements[109]. Corporate Governance - The report outlines the corporate governance structure, including various committees such as the audit and remuneration committees[13]. - Sanbase Corporation Limited's auditor is PricewaterhouseCoopers, ensuring the integrity of financial reporting[15]. - The Group has maintained good relationships with customers and suppliers, with no material disputes reported during the year ended 31 March 2022[125]. Future Outlook - The Group plans to leverage its extensive subcontractor network and client resources to capitalize on market recovery opportunities post-pandemic[32]. - The Chairman expressed optimism about the long-term prospects of the fit-out market in Hong Kong and the PRC, despite short-term challenges[32]. - The Group expects a rebound in demand for fit-out services as companies consider lease renewals and relocations[74][78]. - The Group remains optimistic about the Grade A commercial property fit-out market in Hong Kong as the pandemic subsides, with expectations for the office leasing market to return to an upward trajectory in Q2 and Q3 2022[74][78]. Shareholder Information - The Group did not have any significant investments, material acquisitions, or disposals during the year ended 31 March 2022[71]. - The Group has not recommended the payment of a final dividend for the year ended 31 March 2022, consistent with the previous year[137]. - The Group's dividend policy aims to balance shareholder expectations with prudent fund management, subject to shareholder approval[135]. - As of March 31, 2022, the Company's distributable reserves amounted to HKD 73.4 million, a decrease from HKD 78.0 million in 2021[145]. Employee and Management Information - The Group focuses on providing competitive remuneration packages to employees to recognize their contributions[126]. - As of March 31, 2022, the total employee cost was approximately HKD 44.9 million, slightly down from HKD 45.2 million as of March 31, 2021, with 83 employees[77]. - The management team anticipates that the efforts made during the pandemic will lead to improved financial performance in the latter part of 2022[75][78]. Risk Factors - The Group is exposed to various risks, including impacts from the pandemic, reliance on subcontractors, and project-based revenue fluctuations[111]. - The Group's liquidity and financial position may be adversely affected if progress payments or retention money are not received in full and on time[120]. - The Group's fee collection and profit margins are dependent on the terms of work contracts, which may not be regular[111]. Share Option and Incentive Plans - The Share Option Scheme allows for the issuance of up to 20,000,000 shares, which is approximately 10% of the total issued share capital as of the annual report date[184]. - The Share Award Scheme permits the grant of up to 2,056,000 shares, representing about 1.03% of the total issued share capital as of the annual report date[188]. - The company aims to attract suitable personnel for its ongoing operations and development through the share incentive plan[189].
庄皇集团公司(08501) - 2022 - 年度财报