Financial Performance - For FY2023, Chi Kan Holdings Limited secured 8 new contracts with a total contract sum of approximately HK$611.3 million[10]. - As of March 31, 2023, the company had 24 contracts on hand, down from 32 contracts as of March 31, 2022, with an unrecognized contract amount of approximately HK$812.3 million[10]. - The Group's audited consolidated revenue for FY2023 was approximately HK$1,623.6 million, an increase from approximately HK$1,574.3 million in FY2022[20]. - The construction business contributed approximately HK$1,373.7 million to the revenue, up from approximately HK$1,133.2 million in FY2022, with 24 projects on hand as of March 31, 2023[20]. - The E-Commerce business generated revenue of approximately HK$249.8 million during FY2023[20]. - Gross profit for FY2023 was approximately HK$221.2 million, down from approximately HK$322.4 million in FY2022, resulting in a gross profit margin of approximately 13.6%[20]. - The gross profit margin decreased by approximately 6.9% from 20.5% in FY2022 to 13.6% in FY2023, primarily due to a decline in E-Commerce gross profit[20]. - Other incomes increased by HK$20.2 million from approximately HK$1.9 million in FY2022 to approximately HK$22.1 million in FY2023, mainly due to an increase in government grants of approximately HK$21.7 million[23]. - Selling and administrative expenses decreased by HK$77.8 million to approximately HK$167.7 million, compared to approximately HK$245.5 million last year, primarily due to a reduction in operating expenses for the E-Commerce business[23]. - Profit attributable to the owners of the Company increased to approximately HK$53.5 million, representing a 37.9% increase over approximately HK$38.8 million in the previous year[23]. - Adjusted profit attributable to owners, excluding government subsidies, amounted to approximately HK$31.8 million, a decrease of approximately 18.0% compared to approximately HK$38.8 million last year[23]. Market and Business Strategy - The Group has been engaged in E-Commerce since March 2021, strategically positioning itself as a brand retailer on various platforms, offering 500 types of products[10]. - The Group's online retail business is expected to achieve sustainable and rapid development through the provision of quality and diverse products[10]. - The company continues to explore opportunities for market expansion and new strategies in response to evolving market conditions[10]. - The Group's strategy includes cooperation with three private E-Commerce platforms to provide brand commodities tailored to customer needs[18]. - The Group aims for sustainable development by strictly selecting products and manufacturers to ensure high quality[19]. - The Group expects growth in its E-Commerce business following the end of the COVID-19 pandemic, which had significantly impacted operations[55]. - The Group anticipates sustainable growth in the online retail market due to changing consumption habits driven by mobile internet usage in the PRC[55]. - The construction business in Hong Kong faces a challenging environment, but the Group remains confident in its future development due to its established reputation and healthy financial position[55]. Operational Challenges - The outbreak of COVID-19 may significantly and adversely impact the Group's business operations and financial performance due to potential delays in new construction projects and labor shortages[25]. - Cash flow mismatch may materially and adversely affect the Group's liquidity and financial position due to various upfront costs incurred before receiving payments from customers[27]. - The COVID-19 outbreak in Hong Kong may significantly adversely affect the company's business operations and financial performance due to economic uncertainty and decreased purchasing power[28]. - The company faces potential delays in project approvals and construction timelines, impacting its ability to fulfill contractual obligations and collect payments from clients[28]. - Cash inflows primarily consist of progress payments from customers, who retain a maximum of 5% of the total contract sum as retention money, which may delay cash flow[30]. - The company may incur substantial upfront costs for projects, leading to significant cash outflows and potential liquidity issues due to timing mismatches between receiving payments and making supplier payments[31]. - Discrepancies between estimated and actual costs can adversely affect the company's business and financial performance, particularly if unexpected circumstances arise[33]. - Labour costs are a major expense for construction projects, and significant increases in these costs may not be transferable to customers, negatively impacting financial performance[35]. Corporate Governance and Management - The company maintains long-term relationships with customers and partners, which is crucial for its business model and overall success[36]. - The Group's current ratio decreased from 3.3 times as of March 31, 2022, to 2.8 times as of March 31, 2023, primarily due to an increase in trade payables[45]. - The gearing ratio increased from 4.2% as of March 31, 2022, to 6.5% as of March 31, 2023, mainly due to an increase in bank borrowings[48]. - The Group's capital structure consisted of approximately HK$455.2 million in equity and approximately HK$29.5 million in debts (lease liabilities and bank borrowings) as of March 31, 2023[48]. - The Group's liquidity position is closely monitored by the Directors and senior management to meet funding needs[42]. - The Group has maintained long-term relationships with clients and partners, some exceeding 10 years, which is crucial for its business model[39]. - The Group's management team is experienced and stable, contributing to high customer satisfaction[39]. - The company is focused on expanding its market presence and enhancing operational efficiency through strategic planning and management oversight[59]. - The management team emphasizes the importance of corporate governance and compliance, ensuring transparency and accountability in operations[64]. - The company is exploring new strategies for market expansion and product development to drive future growth[60]. - The leadership's extensive experience in their respective fields positions the company well for navigating market challenges and opportunities[63]. - The company aims to leverage its management expertise to enhance shareholder value and operational performance[62]. - The board's composition reflects a commitment to diverse perspectives and expertise, which is crucial for informed decision-making[61]. Environmental, Social, and Governance (ESG) - The Group is committed to environmental protection and sustainable development through green practices in its business activities[41]. - The ESG report covers the construction and E-commerce business for the fiscal year ended 31 March 2023[184]. - The Group's environmental performance data is primarily focused on office management in Hong Kong and the PRC due to operational models at construction sites[185]. - The Group is committed to quantifying and disclosing key performance indicators within environmental and social categories[188]. - The Group emphasizes the importance of sustainability as a critical element for maintaining its leading position in the industry[191]. - The Board is fully responsible for formulating and reporting on ESG strategies, overseeing and managing ESG-related risks[192]. - The Group has established an effective risk management and internal control system to support sustainable development[192]. - The ESG management team is tasked with identifying, evaluating, prioritizing, managing, and mitigating material ESG-related issues[192]. - The Group engages with stakeholders, including shareholders and regulatory bodies, to communicate business performance and gather feedback[195]. - The Group emphasizes the importance of career development, competitive salary, and occupational health for employees[200]. - Customer expectations include service delivery quality and protection of customer information[200]. - The Group aims to build a responsible supply chain and maintain integrity in cooperation with suppliers[200]. - Community involvement and social responsibilities are key expectations from the community[200]. Shareholder and Board Matters - The Board does not recommend the payment of a final dividend for the year ended 31 March 2023[80]. - The Listing was completed on 14 August 2020, marking a significant milestone for the Group[79]. - The financial results for the year ended 31 March 2023 are detailed in the consolidated statement of comprehensive income[79]. - The Company has not granted, exercised, or cancelled any share options under the share option scheme since its adoption on July 17, 2020[83]. - The Company considers all independent non-executive Directors to be independent as per the Listing Rules[84]. - The Directors' remuneration details are provided in note 9 of the Financial Statements[92]. - The Company has appropriate directors' and officers' liability insurance coverage in place[89]. - The Company will dispatch a circular to shareholders regarding the re-election of Directors along with the annual report[84]. - The Company has established an Audit Committee, which assists the Board in reviewing financial information, internal control, and risk management systems[148]. - The Audit Committee reviewed the Company's financial statements for the year ended March 31, 2023, including accounting principles and practices[148]. - The Company provides sufficient resources for Board committees to fulfill their duties and allows them to seek independent professional advice at the Company's expense[147]. - The Company has established specific written terms of reference for all Board committees, outlining their authority and duties[144]. - The Board is responsible for overseeing the management, business strategies, and financial performance of the group to ensure good corporate governance practices[129]. - The Board meets regularly to discuss and formulate the overall strategy and financial performance of the Group, with meetings held at least four times a year[138]. - Attendance at Board meetings for FY2023 shows all Executive and Independent Non-executive Directors attended 100% of the meetings[140]. - The Remuneration Committee held two meetings to review and recommend the remuneration policy and structure for executive Directors and senior management[154]. - The Nomination Committee held two meetings to assess the Board composition and the independence of independent non-executive Directors[158]. - The Company has established a formal risk management policy and conducts annual risk assessments to identify and mitigate potential risks[164]. - The Board is responsible for overseeing the Group's risk management and internal control systems, which are reviewed at least annually for effectiveness[165]. - The Company has a structured approach to ensure compliance with legal and regulatory requirements, as well as adherence to corporate governance codes[162].
智勤控股(09913) - 2023 - 年度财报