Financial Performance - The total revenue of Polyfair Holdings Limited decreased by approximately HK$31.4 million or 8.7%, from approximately HK$362.1 million for the year ended March 31, 2022, to approximately HK$330.7 million for the year ended March 31, 2023[19][23]. - The decrease in revenue was mainly attributable to the substantial completion of a sizable project[19][23]. - Revenue from commercial properties projects was approximately HK$95.9 million, representing approximately 29.0% of the Group's revenue, while revenue from residential properties projects was approximately HK$234.8 million, representing approximately 71.0% of the Group's revenue[39]. - The Group's cost of services decreased to approximately HK$313.8 million for the year ended March 31, 2023, from approximately HK$345.6 million for the year ended March 31, 2022, representing a decrease of approximately 9.2%[40]. - The Group's gross profit increased by approximately HK$0.4 million from approximately HK$16.5 million for the year ended March 31, 2022, to approximately HK$16.9 million for the year ended March 31, 2023, with a gross profit margin increase from approximately 4.6% to approximately 5.1%[41]. - Profit for the year increased from approximately HK$2.7 million for the year ended 31 March 2022 to approximately HK$3.0 million for the year ended 31 March 2023, representing an increase of about 11.1%[57]. Project and Operational Insights - As of March 31, 2023, the Group had ten ongoing projects with a total original contract sum of approximately HK$760.2 million, of which approximately HK$237.2 million was recognized as revenue during the Reporting Period[30]. - The Group remains optimistic about its core business despite the economic slowdown, believing there is a market for quality façade and curtain wall works in Hong Kong[34]. - The forecast completions for residential buildings in Hong Kong are 19,953 new units in 2023 and 26,970 new units in 2024, driving demand for façade and curtain wall works[32]. - The Group plans to strengthen its sales efforts and carefully control service costs to expand its customer base and achieve sustainable business growth[34]. Financial Position and Ratios - Cash and bank balances as at 31 March 2023 were approximately HK$14.5 million, an increase of approximately HK$2.0 million compared to HK$12.5 million as at 31 March 2022[58]. - Outstanding borrowings increased from approximately HK$110.7 million as at 31 March 2022 to approximately HK$154.4 million as at 31 March 2023, reflecting a rise of about 39.5%[59]. - The current ratio decreased from approximately 1.3 as at 31 March 2022 to approximately 1.2 as at 31 March 2023[60]. - The gearing ratio increased from approximately 53.0% to approximately 62.3% from 31 March 2022 to 31 March 2023[60]. Human Resources and Staff Management - Total staff cost increased to approximately HK$53.9 million in 2023 from HK$49.9 million in 2022, marking an increase of about 4.0%[76]. - As of March 31, 2023, the Group employed 140 staff, an increase from 117 in 2022[80]. - The Group provides on-the-job training and sponsors employees for training courses to enhance skills[80]. - Total employee costs, including director remuneration, amounted to approximately HKD 53.9 million, up from HKD 49.9 million in 2022[80]. Risk Management and Compliance - The Group's risk management practices are crucial to mitigate operational and financial risks effectively[89]. - Changes in building material costs, staff costs, and subcontracting fees may lead to cost overruns, significantly impacting operational results and financial performance[90]. - The Group may face difficulties in refinancing or an increase in financing costs, which could affect financial stability[90]. - The Group has complied with all relevant laws and regulations in Hong Kong during the year[84]. Corporate Governance - The Company has complied with the applicable code provisions of the Corporate Governance Code for the year ended March 31, 2023[125]. - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors[133]. - The Company will enhance its corporate governance practices to align with the growth of the business[125]. - The Audit Committee was established on January 25, 2018, and is composed of three independent non-executive directors, ensuring compliance with GEM Listing Rules[175]. - The company has a structured approach to corporate governance, with all directors subject to retirement by rotation at least once every three years[156]. - The majority of members in each Board committee are independent non-executive directors, promoting objectivity and independence in decision-making[174]. - The company has implemented sound internal control and risk management systems to monitor operational and financial performance[158]. Board and Committee Activities - Four Board meetings were held during the year ended March 31, 2023, all of which were regular meetings[143]. - The Audit Committee held 4 meetings for the year ended 31 March 2023, reviewing quarterly, interim, and annual financial statements[177]. - The Remuneration Committee held 1 meeting during the year, discussing and reviewing the existing remuneration policy and structure for Directors and senior management[184]. - The Nomination Committee also held 1 meeting, reviewing the Board's structure, size, composition, and diversity, and assessing the independence of independent non-executive Directors[194]. - All executive directors attended 100% of the board meetings, demonstrating strong governance participation[199]. - Independent non-executive directors also attended all meetings, indicating robust oversight[199].
宝发控股(08532) - 2023 - 年度财报