Financial Performance - For the year ended March 31, 2022, the group's revenue remained stable at approximately HKD 42.5 million compared to HKD 42.2 million for the year ended March 31, 2021[13]. - The gross profit for the year ended March 31, 2022, was approximately HKD 3.8 million, a decrease from a gross loss of approximately HKD 4.0 million for the year ended March 31, 2021, mainly due to a reduction in cost of revenue[13]. - The loss attributable to owners of the company for the year ended March 31, 2022, was approximately HKD 20.4 million, down from a loss of approximately HKD 29.5 million for the year ended March 31, 2021, primarily due to increased gross profit and reduced administrative expenses[13]. - The group’s pre-tax loss decreased from approximately HKD 27.7 million for the year ended March 31, 2021, to approximately HKD 20.6 million for the year ended March 31, 2022[16]. - The net loss for the year ended March 31, 2022, was approximately HKD 20.4 million, a decrease from approximately HKD 29.5 million for the year ended March 31, 2021, mainly due to increased gross profit and reduced administrative expenses[56]. - Other income increased to approximately HKD 3.2 million for the year ended March 31, 2022, compared to approximately HKD 2.5 million for the year ended March 31, 2021, primarily due to an increase in waived other payables[50]. - Administrative expenses decreased by approximately 23.4% from approximately HKD 15.7 million for the year ended March 31, 2021, to approximately HKD 12.0 million for the year ended March 31, 2022, mainly due to a reduction in employee costs[53]. - Financing costs increased by approximately 20.7% from approximately HKD 1.8 million for the year ended March 31, 2021, to approximately HKD 2.2 million for the year ended March 31, 2022, primarily due to increased interest rates on bank and other borrowings[54]. Corporate Governance - The board of directors confirmed that the information in the report is accurate and complete, with no misleading or fraudulent elements[13]. - The board consists of six directors, including three executive directors and three independent non-executive directors[20]. - The company emphasizes corporate governance through the establishment of various committees, including audit, remuneration, and nomination committees[28]. - The company has adhered to all principles and applicable provisions of the corporate governance code throughout the fiscal year ending March 31, 2022[88]. - The company has adopted the GEM Listing Rules regarding the securities trading code for directors, ensuring compliance with standards[89]. - The board confirmed its responsibility for the effectiveness of the risk management and internal control systems, which are designed to manage rather than eliminate risks[129]. - The company has purchased directors' liability insurance to cover legal responsibilities arising from actions against directors[97]. - Independent non-executive directors constitute at least one-third of the board, ensuring strong independent judgment[102]. - The board regularly reviews the contributions of directors and their commitment to fulfilling their responsibilities[94]. - The company maintains training records for all directors and provides ongoing briefings and professional development as needed[111]. Business Operations - The group has secured new regular contracts for professional road maintenance in certain areas of the New Territories and will continue to participate in tenders for civil engineering and maintenance projects[17]. - The construction industry in Hong Kong has faced negative impacts from the COVID-19 pandemic, including supply chain disruptions and labor shortages due to quarantine measures[17]. - The company anticipates that the current competitive bidding environment for maintenance projects is temporary[17]. - The company continues to focus on developing its maintenance and civil engineering business in Hong Kong[46]. - The company expanded its services to include civil engineering projects such as the construction of accessible facilities and drainage systems in Hong Kong since 2013[46]. - Despite an increase in industry tender numbers, competitive pricing has kept project profit margins relatively low[46]. - The company’s major business involves civil engineering and maintenance works related to road and highway infrastructure[153]. Shareholder Information - The company does not recommend the payment of any dividends for the year ended March 31, 2022[13]. - The company did not recommend a final dividend for the year ending March 31, 2022, consistent with the previous year[76]. - The company has adopted a dividend policy that allows the board to determine the declaration and payment of dividends at its discretion, with no predetermined payout ratio[128]. - The company will continue to review its dividend policy and reserves the right to update or modify it at any time[128]. - The board will consider various factors, including financial performance and capital expenditure needs, when making decisions regarding dividends and future expansions[132]. - The company encourages effective communication with shareholders and stakeholders through various formal channels[144]. - The company’s board of directors is committed to ensuring that shareholders receive comprehensive and easily understandable information[145]. Directors and Management - Mr. Xia, aged 47, has been the Chairman and Executive Director since June 8, 2010, and has over 19 years of experience in road and highway management[21]. - Mr. Ye, aged 51, serves as the CEO and Executive Director since June 8, 2010, overseeing operations, business development, and financial management[24]. - Ms. Tang, aged 42, has been an independent non-executive director since September 21, 2018, and is the chair of the audit committee[26]. - Mr. Yu, aged 41, has been an independent non-executive director since September 21, 2018, and is the chair of the nomination committee[29]. - Dr. Huo, aged 49, has been an independent non-executive director since September 21, 2018, and is the chair of the remuneration committee[31]. - The executive team has extensive industry experience, with Mr. Ye accumulating over 26 years in civil engineering[25]. - The board's composition includes members with diverse backgrounds in finance, engineering, and management, enhancing strategic decision-making[30]. - The remuneration committee regularly reviews and determines the remuneration of directors and senior management based on market levels and the group's performance[196]. - Directors are entitled to indemnification from the company's assets for losses or liabilities incurred in civil or criminal litigation where they are victorious or acquitted[197]. Financial Position - As of March 31, 2022, the net current assets were approximately HKD 45.7 million, compared to approximately HKD 29.9 million as of March 31, 2021, with a current ratio of approximately 3.1 times[57]. - The total amount of bank overdrafts, bank and other borrowings, and lease liabilities as of March 31, 2022, was approximately HKD 0.3 million, a significant decrease from approximately HKD 23.3 million as of March 31, 2021, with all borrowings repaid[57]. - Capital expenditures increased significantly to approximately HKD 5.3 million for the year ended March 31, 2022, from approximately HKD 0.2 million for the year ended March 31, 2021[62]. - The number of employees decreased to 54 as of March 31, 2022, from 63 as of March 31, 2021[67]. - The company has not engaged in any significant investments as of March 31, 2022[78]. - The company has fully utilized the net proceeds from the placements according to the disclosed purposes in the prospectus as of March 31, 2022[84]. - The company has a stock option plan that allows for the issuance of shares not exceeding 30% of the total issued shares at any time[165]. - The maximum number of shares that may be issued under the stock option plan is capped at 10% of the total issued shares, equivalent to 114,220,000 shares as of the report date[168].
广骏集团控股(08516) - 2022 - 年度财报