Financial Performance - The group's profit attributable to shareholders decreased by 76.63% to approximately HKD 4.86 million for the year ended March 31, 2023, compared to HKD 20.78 million for the previous year[6]. - Revenue fell from approximately HKD 405.17 million for the year ended March 31, 2022, to approximately HKD 287.06 million during the reporting period[7]. - The decrease in profit was primarily attributed to the impacts of COVID-19, the Russia-Ukraine conflict disrupting global supply chains, and US-China trade tensions[7]. - The gross profit decreased by approximately HKD 36.87 million due to reduced revenue from installation services and increased direct costs[8]. - The group's revenue decreased by approximately HKD 118.11 million or 29.15% to about HKD 287.06 million during the reporting period[19]. - Gross profit fell by approximately HKD 36.87 million or 53.56% to about HKD 31.97 million, with the gross margin decreasing from 16.99% to 11.14%[24]. - The cost of revenue decreased by approximately HKD 81.24 million or 24.16% to about HKD 255.09 million, although the percentage of cost relative to revenue increased[21]. - The company's attributable profit decreased by approximately HKD 15.93 million or 76.63% to about HKD 4.86 million, primarily due to global events impacting supply chains[28]. - Administrative and other operating expenses decreased by approximately HKD 3.55 million or 11.86% to about HKD 26.42 million[25]. - Financing costs increased to approximately HKD 1.50 million from HKD 0.67 million due to higher bank loan interest[26]. - Tax expenses decreased by approximately HKD 6.16 million or 87.65% to about HKD 0.87 million due to reduced taxable profits[27]. - As of March 31, 2023, the group's cash and bank balance was approximately HKD 39.36 million, up from HKD 37.08 million in 2022[32]. - The debt-to-equity ratio increased to approximately 22.54% from 9.59% in the previous year[34]. Operational Strategy - The company plans to closely monitor project progress and maintain communication with suppliers and subcontractors to enhance operational efficiency and profitability[10]. - Management will actively seek potential business opportunities to diversify revenue sources and enhance shareholder value[10]. - The company remains positive while monitoring new policies from the Hong Kong government aimed at economic recovery[10]. - The increase in material and labor costs directly impacted the company's revenue costs, exacerbated by inflationary pressures affecting project budgets[13]. Corporate Governance - The company has established a remuneration committee to review the remuneration policies and structures for all directors and senior management[49]. - The board consists of seven members, including three executive directors and three independent non-executive directors[150]. - The company adheres to corporate governance codes and has implemented a diversity policy for its board members[143][150]. - The chairman and CEO roles are held by the same individual, which deviates from corporate governance code C.2.1[143]. - The board is committed to maintaining high standards of corporate governance practices[144]. - The company has established a compliance manual applicable to directors and employees[148]. - The board reviews its diversity policy annually to ensure sustainable development[150]. - The board has adopted a diversity policy to ensure a balanced mix of skills, experience, and diverse thinking among its members[153]. - The company has established three committees: audit, remuneration, and nomination, to assist the board in fulfilling its duties[166]. Shareholder Information - The company reported no dividend payment for the year ending March 31, 2023, compared to a dividend of HKD 0.50 per share in 2022[80]. - As of March 31, 2023, the company's distributable reserves amounted to HKD 16,019,000[84]. - The company had a total of 1,200,000,000 issued shares, with significant shareholdings by key individuals[133]. - Mr. Pan Zhengqiang holds 508,500,000 shares, representing 42.37% of the issued share capital[133]. - The company confirmed that related party transactions during the reporting period did not constitute connected transactions[126]. Risk Management - The board is responsible for evaluating the nature and extent of risks acceptable in achieving strategic objectives and ensuring effective risk management systems are in place[191]. - The risk management framework includes policies and procedures for identifying, assessing, managing, and reporting risks, including strategic, credit, operational, market, liquidity, legal, and regulatory risks[191]. - The internal audit function is tasked with providing objective assurance on the adequacy and effectiveness of the risk management and internal control systems[192]. - The company has adopted a whistleblowing policy to allow employees and stakeholders to report concerns regarding misconduct without fear[195]. - The company maintains a zero-tolerance stance towards corruption, as outlined in its anti-corruption policy[196]. Environmental Compliance - The company has implemented an environmental management system and obtained ISO 14001:2004 certification[98]. - There were no recorded violations of applicable environmental regulations during the reporting period[99]. - The company has complied with relevant laws and regulations that significantly impact its business and operations during the reporting period[100].
荧德控股(08535) - 2023 - 年度财报