Financial Performance - The Group recorded total revenue of HK$223.1 million, a decrease of approximately 36.4% compared to HK$350.8 million for the year ended March 31, 2021[14]. - The net profit for the Group was approximately HK$1.4 million, representing a decrease of approximately 76.7% from approximately HK$6.0 million for the previous year[14]. - The Group's revenue decreased by approximately HK$127.7 million or about 36.4% to approximately HK$223.1 million for the year ended 31 March 2022, compared to approximately HK$350.8 million for the year ended 31 March 2021[36]. - Profit attributable to owners of the Company decreased by approximately HK$4.6 million or approximately 76.7% to approximately HK$1.4 million for the year, down from approximately HK$6.0 million for the year ended 31 March 2021[39]. - The gross profit for the Year amounted to approximately HK$16.4 million, representing a decrease of approximately 23.4% compared to approximately HK$21.4 million for the year ended 31 March 2021[33]. - Other income and gain for the Year amounted to approximately HK$2.4 million, representing a decrease of approximately 53.8% from approximately HK$5.2 million for the year ended 31 March 2021[34]. Impact of COVID-19 - The COVID-19 pandemic continued to impact the construction industry in Hong Kong, creating a challenging business environment for the Group[15]. - Supply chain disruptions affected the delivery of products from Mainland China to Hong Kong construction sites, leading to increased operational difficulties[15]. - The Group incurred additional costs due to COVID-19 related safety measures and reduced productivity, impacting overall profitability[22]. - The Group anticipates gradual recovery in Hong Kong's economy and construction industry as social distancing measures are relaxed and government support schemes are implemented[22]. Operational Challenges - The Group faced additional transportation costs for delivering products to construction sites due to supply chain issues[17]. - The decrease in net profit is attributed to a proactive pricing strategy in response to increased competition and reduced government subsidies[33]. - The Group's projects are non-recurring, and failure to secure new projects could materially affect sustainability and financial performance[12]. - There may be net cash outflow during certain periods due to payment practices, potentially impacting the ability to secure new projects and expand business[12]. - The Group relies on building material suppliers and subcontractors, and under-performance by them may adversely affect operations and profitability[12]. Future Plans and Strategies - The Group plans to explore other business opportunities to enhance future development and strengthen revenue bases, including leasing out newly acquired investment properties for rental income[23]. - The Group remains focused on long-term goals despite near-term challenges and uncertainties in the industry[23]. - The Group's management regularly evaluates business objectives and may adjust plans based on changing market conditions[67]. Financial Position and Capital Management - As at 31 March 2022, the Group had total cash and bank balances of approximately HK$62.8 million, down from approximately HK$84.8 million in 2021[39]. - The gearing ratio as at 31 March 2022 was approximately 0.7%, down from approximately 1.3% in 2021[46]. - Capital expenditure during the year included approximately HK$421,000 for property, plant, and equipment, and HK$82.0 million for investment properties[46]. - The Group's capital expenditures were primarily funded by internal resources[48]. - The Group's financial condition, capital and debt levels, and future cash requirements are considered in the dividend policy[78]. Corporate Governance - The Board is composed of five members, including two executive directors and three independent non-executive directors[170]. - The Company has adopted all code provisions in the Corporate Governance Code as its own code on corporate governance practices[166]. - The Company will continue to enhance its corporate governance practices to align with the operation and growth of the Group[166]. - The Audit Committee was established on December 12, 2019, in compliance with Listing Rules and the CG Code[199]. - The primary duties of the Audit Committee include reviewing financial statements and significant financial reporting judgments[199]. Shareholder Information - The Board has resolved not to recommend the declaration of a final dividend to shareholders for the year ending March 31, 2022[78]. - The Company confirmed that it has maintained a sufficient amount of public float for its shares as required under the Listing Rules during the year[149]. - The company has not disclosed any substantial shareholders' interests or short positions in shares and underlying shares other than those already mentioned[122]. Management and Human Resources - The human resource management objective is to provide competitive remuneration and implement a performance appraisal system to reward well-performing staff[94]. - The company promotes career development by offering training and opportunities to enhance employee performance[94]. - Continuous professional development for directors is encouraged, with training provided on relevant guidelines and responsibilities[192].
华和控股(09938) - 2022 - 年度财报