Financial Performance - For the fiscal year ending March 31, 2023, the company recorded total revenue of approximately HKD 222.8 million, an increase of about HKD 22.9 million or 11.5% compared to approximately HKD 199.9 million for the fiscal year ending March 31, 2022[7]. - The profit and total comprehensive income for the fiscal year was approximately HKD 5.5 million, a decrease of about HKD 5.4 million or 49.5% from approximately HKD 10.9 million for the previous fiscal year, primarily due to increased construction costs and administrative expenses[7]. - The company's total revenue increased from approximately HKD 199.9 million for the year ended March 31, 2022, to approximately HKD 222.8 million for the year ended March 31, 2023, representing an increase of about HKD 22.9 million or 11.5%[12]. - Revenue from construction protection services rose from approximately HKD 117.6 million to approximately HKD 162.7 million, an increase of about HKD 45.1 million or 38.4%, driven by an increase in both public and private project numbers[14]. - Revenue from construction protection products decreased from approximately HKD 82.2 million to approximately HKD 60.1 million, a decline of about HKD 22.1 million or 26.9%, primarily due to reduced demand from Hong Kong customers[17]. - Sales and service costs increased from approximately HKD 137.6 million to approximately HKD 165.4 million, an increase of about HKD 27.8 million or 20.2%[18]. - Gross profit decreased from approximately HKD 62.3 million to approximately HKD 57.4 million, a decline of about HKD 4.9 million or 7.9%, with the gross profit margin dropping from approximately 31.2% to 25.8%[19]. - Other income rose from approximately HKD 0.9 million to approximately HKD 1.4 million, mainly due to subsidies received from the Hong Kong government's employment support scheme[20]. - The total profit and comprehensive income decreased from approximately HKD 10.9 million to approximately HKD 5.5 million[26]. Project and Contract Management - The company undertook 347 projects with a total contract value of approximately HKD 881.1 million, of which 87 projects with a contract value of approximately HKD 78.2 million were completed[11]. - As of March 31, 2023, the company had 260 ongoing contracts with a total contract value of approximately HKD 802.9 million[11]. - The company plans to actively explore and seek more quality construction protection products to create reliable solutions for customers[7]. - The company remains vigilant and will continue to expand its workforce and pursue more construction protection projects in Hong Kong to strengthen its market position[61]. Market Outlook and Strategy - The company anticipates continued challenges in the business environment but remains optimistic about the construction protection industry due to the relaxation of pandemic measures and increased housing supply from the Hong Kong government[7]. - The company aims to expand its customer base and market share while optimizing resource utilization and efficiency to maximize shareholder returns[6]. - The company may consider other investment opportunities to diversify its revenue sources and mitigate competition risks in the construction market[7]. - The company plans to regularly review its asset structure and business strategies in response to current economic uncertainties and challenges[61]. - The company aims to maintain profitability and market competitiveness by strictly adhering to cost control policies and seeking suitable investment opportunities for business diversification[61]. Financial Position and Assets - As of March 31, 2023, the company's total assets were approximately HKD 257.5 million, a slight decrease from HKD 258.2 million as of March 31, 2022[30]. - The company's equity attributable to shareholders increased from approximately HKD 182.1 million to approximately HKD 187.6 million, an increase of about HKD 5.5 million[30]. - The company's interest-bearing borrowings totaled approximately HKD 27.8 million as of March 31, 2023, down from HKD 28.6 million as of March 31, 2022[30]. - The group's debt-to-equity ratio decreased from approximately 15.7% as of March 31, 2022, to about 14.8% as of March 31, 2023, primarily due to bank loan repayments[32]. - As of March 31, 2023, the group's current assets net value was approximately HKD 134.4 million, an increase of about HKD 2.4 million from HKD 132.0 million as of March 31, 2022, resulting in a current ratio increase from approximately 2.8 times to about 3.0 times[33]. Human Resources and Workforce - Total employee costs for the year ended March 31, 2023, were approximately HKD 33.6 million, up from HKD 30.1 million for the year ended March 31, 2022[52]. - The company has recruited additional personnel, including a quantity surveyor manager, a quantity surveyor, two project managers, three foremen, and a project clerk to support the growing number of construction protection projects[58]. Corporate Governance - The company has adopted the GEM Listing Rules Appendix 15 Corporate Governance Code as the basis for its corporate governance practices[84]. - The board believes that effective corporate governance is essential for protecting shareholders' interests and enhancing corporate value[84]. - The company has complied with all applicable provisions of the Corporate Governance Code since its listing date, except for the provision C.2.1[84]. - The company is committed to achieving a high level of corporate governance to enhance transparency and accountability[84]. - The board consists of independent non-executive directors who provide independent advice on corporate governance matters[70]. - The company has a remuneration committee, audit committee, and nomination committee to oversee governance practices[70]. - The independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules, ensuring compliance with governance standards[92]. Risk Management - The board is responsible for the effectiveness of the group's risk management and internal control systems, which are reviewed annually[129]. - The risk management process includes identifying, assessing, responding to, monitoring, and reporting risks, covering strategic, credit, operational, market, liquidity, legal, and regulatory risks[131]. - The company has adopted multiple internal guidelines and written policies to monitor and mitigate business-related risks[132]. - The board believes that the risk management and internal control systems are adequate and effective as of March 31, 2023, with no significant control deficiencies identified[134]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes its commitment to reducing operational environmental impact and promoting sustainability through the use of eco-friendly products and recycling initiatives[8]. - The board is responsible for overseeing environmental, social, and governance (ESG) strategies and reports, ensuring alignment with strategic growth[152]. - The ESG working group collects and analyzes data, monitors performance, and ensures compliance with relevant laws and regulations[153]. - The report includes key performance indicators (KPIs) relevant to the group's operations and sustainability efforts[161]. - The company aims to integrate ESG considerations into decision-making processes[151]. - The company actively promotes environmental awareness among employees and encourages the use of eco-friendly products[176]. Emissions and Resource Management - In the fiscal year 2023, the total greenhouse gas emissions intensity decreased by approximately 7.50%, from about 0.80 tons of CO2 equivalent per employee in fiscal year 2022 to approximately 0.74 tons in fiscal year 2023[181]. - The company has set a target to reduce total greenhouse gas emissions intensity by March 31, 2027, using fiscal year 2022 as the baseline year[181]. - Total greenhouse gas emissions increased from 66.73 tons CO2 equivalent in FY2022 to 82.96 tons CO2 equivalent in FY2023, representing a 24.3% increase[182]. - The company has implemented measures to control emissions, including route planning to avoid duplication and encouraging public transport usage[179]. - The company aims to reduce total water consumption to 475 cubic meters or below by the end of FY2024[192]. - The total amount of non-hazardous waste disposed of increased from 5,544.62 kg in FY2022 to 7,053.73 kg in FY2023[187].
新威工程集团(08616) - 2023 - 年度财报