Financial Performance - The Group recorded total revenue of HK$208.4 million for the year ended 31 March 2023, a decrease of approximately 6.7% compared to HK$223.2 million for the previous year[12]. - The net profit for the Group increased to approximately HK$2.9 million, representing an increase of approximately 107.1% from HK$1.4 million for the year ended 31 March 2022[12]. - The Group's revenue from construction and ancillary services and rental of investment properties decreased by approximately HK$14.8 million or approximately 6.7%, from approximately HK$223.2 million for the year ended 31 March 2022 to approximately HK$208.4 million for the Year[35]. - The gross profit for the Year amounted to approximately HK$25.3 million, representing an increase of approximately 55.2% compared to approximately HK$16.3 million for the year ended 31 March 2022[36]. - The gross profit margin for the Year was approximately 12.1%, compared to approximately 7.3% for the year ended 31 March 2022[36]. - The Group recorded a consolidated net profit of approximately HK$2.9 million for the Year, compared to an audited consolidated net profit of approximately HK$1.4 million for the year ended 31 March 2022[29]. - The rental of investment properties segment suffered a loss of approximately HK$395,000 during the year ended 31 March 2023, excluding a fair value change on investment properties of HK$4.7 million[28]. - Other income, gain and losses for the Year amounted to losses of approximately HK$2.3 million, a decrease of HK$4.6 million compared to a gain of approximately HK$2.3 million for the year ended 31 March 2022[37]. - Administrative expenses for the Year amounted to approximately HK$16.7 million, representing a decrease of approximately 4.0% compared to approximately HK$17.4 million for the year ended 31 March 2022[38]. - Profit attributable to owners of the Company increased by approximately HK$1.5 million or approximately 107.1% to approximately HK$2.9 million for the year[46]. Investment and Property Management - The Group acquired two additional investment properties during the year, enhancing its rental income segment[18]. - The Group plans to lease out the newly acquired investment properties for rental income after existing tenancies expire and renovations are completed[18]. - The Group is optimistic about the potential for capital appreciation from investment properties in the long run[18]. - The Group intends to lease out acquired investment properties for rental income after renovations, with five investment properties currently held as of 31 March 2023[28]. - The Group anticipates exploring suitable development opportunities to broaden its revenue base and benefit shareholders[30]. Market Environment and Challenges - The Group faces challenges from intense competition and a difficult business environment, including the impact of COVID-19 and global economic uncertainties[13]. - The overall outlook for the industry remains challenging, with geopolitical tensions and high inflation affecting the business environment[13]. - The Group intends to adopt a more competitive tender pricing policy and stringent cost control measures to maintain reasonable project gross margins[13]. Financial Position and Management - The Group's total cash and bank balances as of March 31, 2023, were approximately HK$63.6 million, compared to approximately HK$62.8 million in 2022, with no bank borrowings[48]. - The gearing ratio as of March 31, 2023, was approximately 0.2%, down from approximately 0.7% in 2022[57]. - Capital expenditure for the year included approximately HK$3.6 million for property, plant, and equipment, and approximately HK$50.1 million for investment properties, compared to HK$421,000 and HK$82.0 million in 2022, respectively[58]. - The Group maintained a prudent financial management approach, closely monitoring its liquidity position to meet funding requirements[49]. - The Group had contingent liabilities of approximately HK$12.2 million related to written guarantees to banks, down from approximately HK$33.0 million in 2022[72]. Shareholder and Dividend Information - The Board has resolved not to recommend the declaration of a final dividend to shareholders for the year[103]. - The financial condition of the Group, including capital and debt levels, was considered in the decision-making process regarding dividends[106]. - The Company’s dividend policy aims to allow shareholders to participate in profits while retaining sufficient reserves for future growth[101]. - As of March 31, 2023, the company has distributable reserves of approximately HKD 63.0 million[135]. Corporate Governance and Directors - All independent non-executive Directors have confirmed their independence in accordance with the Listing Rules[132]. - No early termination of appointment of Directors occurred during the year, and no termination benefits were provided[145]. - The company has not entered into any management contracts concerning the administration of its business during the year[143]. - Each executive Director has a service contract for a term of three years, while independent non-executive Directors have a two-year appointment[140][141]. - There were no significant transactions involving Directors with material interests during the year[145]. - The company considers all independent non-executive Directors to be independent under the Listing Rules[137]. Connected Transactions - The Group entered into a new lease arrangement with Ms. Wong Chun Siu, spouse of the controlling shareholder, for the use of warehouse and office premises, with lease payments amounting to HK$1,320,000 in 2023[188]. - The initial recognition of the lease resulted in the recognition of right-of-use assets and lease liabilities of approximately HK$7.2 million[186]. - The continuing connected transactions under the new lease agreement were exempt from reporting, annual review, and independent shareholders' approval due to the de minimis exemption under Listing Rules 14A.76[188]. Share Option Scheme - The maximum number of shares that may be issued under the Share Option Scheme is capped at 100,000,000 shares, representing 10% of the shares in issue as of the date of the annual report[196]. - The total number of shares that can be awarded to a substantial shareholder or independent non-executive director under the Share Option Scheme is limited to a maximum of 0.1% of the shares in issue, with an aggregate value not exceeding HK$5.0 million[199]. - The Share Option Scheme was conditionally adopted on December 12, 2019, and will remain valid until December 12, 2029[195]. - Eligible participants under the Share Option Scheme include directors and employees of the Group, aimed at providing incentives for their contributions[195].
华和控股(09938) - 2023 - 年度财报