Financial Performance - The total revenue of Polyfair Holdings Limited increased by approximately HK$62.1 million or 20.7%, from approximately HK$300.0 million for the year ended March 31, 2021, to approximately HK$362.1 million for the year ended March 31, 2022[18]. - The increase in revenue was mainly attributable to the contribution from a sizable project, namely Fo Tan[18]. - Revenue from commercial properties projects was approximately HK$204.9 million, representing approximately 56.6% of the Group's total revenue, while revenue from residential properties projects was approximately HK$157.2 million, representing approximately 43.4%[40]. - The Group's gross profit increased by approximately HK$1.3 million to approximately HK$16.5 million for the year ended March 31, 2022, while the gross profit margin decreased from approximately 5.1% to approximately 4.6%[42]. - Profit for the year increased from approximately HK$1.9 million for the year ended March 31, 2021, to approximately HK$2.7 million for the year ended March 31, 2022, representing a growth of approximately 42.1%[59]. Project and Contract Management - As of March 31, 2022, the Group had twelve projects in progress with a total original contract sum of approximately HK$906.5 million, of which approximately HK$339.5 million was recognized as revenue during the Reporting Period[27]. - During the Reporting Period, Polyfair Holdings Limited was awarded six new projects with a total contract sum of approximately HK$473.5 million, all of which are currently at the commencement stage[27]. - The total contract sum of ongoing projects reflects the Group's strong market position and ability to secure significant contracts[27]. - The Group engages subcontractors for installation work as needed, ensuring technical specifications and performance requirements are met[26]. - Project mismanagement or delays could severely affect the Group's reputation and financial performance due to potential penalties and additional costs[94]. Industry Outlook - The Group is confident about the prospects of the façade and curtain wall works solution industry in Hong Kong, driven by government initiatives to increase land supply for private housing and commercial buildings[19]. - The expected growth of the construction industry in Hong Kong is anticipated to positively impact the Group's business outlook[19]. - The Group aims to capture emerging business opportunities within the construction industry in Hong Kong, indicating a focus on market expansion[96]. Cost and Expenses - The cost of services increased to approximately HK$345.6 million for the year ended March 31, 2022, up from approximately HK$284.8 million for the year ended March 31, 2021, representing an increase of approximately 21.3%[41]. - Administrative expenses decreased by approximately HK$0.2 million from approximately HK$9.8 million to approximately HK$9.6 million for the year ended March 31, 2022[50]. - Finance costs decreased from approximately HK$4.1 million to approximately HK$4.0 million for the year ended March 31, 2022[51]. - Total staff cost, including Directors' emoluments, was approximately HK$49.9 million for the year ended March 31, 2022, compared to approximately HK$41.5 million for the previous year, indicating an increase of approximately 20.6%[80]. Staffing and Management - The number of employees increased from 98 as at March 31, 2021, to 117 as at March 31, 2022, representing a growth of approximately 19.4%[80]. - The Group's management team has extensive experience in the construction industry, with over 30 years of experience in façade and curtain wall construction and project management[102][104]. - The success of the Group significantly depends on key management and the ability to attract and retain additional façade and curtain wall design team staff[94]. Corporate Governance - The Company has complied with the applicable code provisions as set out in the Corporate Governance Code for the year ended March 31, 2022[129]. - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors, meeting GEM Listing Rules requirements[138]. - The Company has established written guidelines for securities transactions by employees, with no incidents of non-compliance noted[131]. - The Company aims to enhance transparency and accountability to safeguard shareholder interests and increase corporate value[128]. - The Board is collectively responsible for directing and supervising the Company's affairs, ensuring sound internal control and risk management systems[163]. Risk Management - The Group's risk management practices are crucial, with potential cost overruns due to changes in building materials and staff costs, which could materially affect operational results and financial performance[94]. - The Group may face refinancing difficulties or increased financing costs, which could impact financial stability[94]. - The Group's cash flow from projects may fluctuate, indicating potential financial volatility[94].
宝发控股(08532) - 2022 - 年度财报