Financial Performance - Revenue increased from approximately HK$456.4 million for the year ended 31 March 2022 to approximately HK$541.6 million for the year ended 31 March 2023, representing an increase of approximately HK$85.2 million or 18.7%[8] - Gross profit increased from approximately HK$57.7 million for the year ended 31 March 2022 to approximately HK$65.5 million for the year ended 31 March 2023, representing an increase of approximately HK$7.8 million or 13.6%[8] - The Group recorded a profit and total comprehensive income for the year attributable to owners of the Company of approximately HK$49.3 million for the year ended 31 March 2023, compared to approximately HK$31.3 million for 2022[8] - Basic earnings per share attributable to owners of the Company was approximately HK5.7 cents for the year ended 31 March 2023, up from approximately HK4.2 cents in 2022[8] - Cost of services increased from approximately HK$398.7 million to approximately HK$476.1 million, representing an increase of approximately HK$77.4 million or 19.4%[71] - Other income increased from approximately HK$0.6 million to approximately HK$18.7 million, primarily due to a government grant of approximately HK$18.3 million[73] - Administrative expenses increased from approximately HK$12.1 million to approximately HK$20.6 million, representing an increase of approximately HK$8.5 million[75] - Profit and total comprehensive income for the year increased from approximately HK$31.3 million to approximately HK$49.3 million, representing an increase of approximately HK$18.0 million or 57.6%[75] - As of 31 March 2023, the Group maintained a net current assets balance of approximately HK$303.6 million, up from approximately HK$140.3 million in 2022[77] - The effective tax rate decreased to approximately 13.1% for the year ended 31 March 2023 from 19.3% in 2022, mainly due to an increase in income not subject to tax[75] Strategic Initiatives - The Group plans to finance the upfront costs of its projects amounting to HKD 67.0 million by March 2023[35] - The Group is expanding its manpower and leasing an additional office, with an investment of HKD 9.9 million planned by March 2024[45] - The Group is procuring an enterprise resources planning (ERP) system, with a budget of HKD 1.9 million set for March 2024[33] - The Group's strategic focus includes market expansion and the adoption of new technologies to enhance operational efficiency[34] - The management plans to leverage the Group's established track record in the wet trades industry to increase market share, particularly in response to the Hong Kong government's focus on addressing housing issues[61][68] - The Group is exploring opportunities for expansion into Southeast Asia, aiming to secure suitable wet trades and other construction-related projects[69] - The Group aims to diversify its service offerings by potentially collaborating with partners or establishing its own teams for related construction services[69] Management and Governance - The Group's management team includes experienced professionals with over 30 years in the industry, ensuring strong leadership[24] - The Group's overall management and business strategy are overseen by Mr. Chan Kiu Sum, who serves as the Chairman and CEO[29] - Ms. Chan Chui Ying, aged 27, is responsible for the Group's sales and marketing, indicating a focus on youth and innovation in management[53] - The Group has a strong board of directors with diverse backgrounds in finance, governance, and project management, enhancing decision-making capabilities[32] - The Group's independent non-executive directors bring over 15 years of experience in consulting, accounting, and auditing, ensuring compliance and oversight[43] - The Group's commitment to safety and compliance is reflected in the qualifications of its management team, including safety supervision training[27] Operational Highlights - As of March 31, 2023, the Group had 53 projects on hand, an increase from 39 projects as of March 31, 2022[57][67] - The increase in revenue was primarily driven by the rise in construction volume for several ongoing large-scale projects, including a commercial project at Hong Kong International Airport and a private residential project in Tai Wo Ping[59][64] - The Group's participation in government infrastructure projects, such as a hospital in Yaumatei and community isolation facilities, helped maintain a solid financial position during challenging times[63][64] - The management is confident in maintaining solid performance in the coming years by seizing opportunities in the housing development sector and controlling costs[61][68] Capital Structure and Financial Position - As of March 31, 2023, bank borrowings amounted to approximately HK$5.6 million, compared to nil in 2022, resulting in a gearing ratio of approximately 1.8%[84] - The Group incurred capital expenditures of approximately HK$2.5 million for the year ended March 31, 2023, up from approximately HK$0.9 million in 2022[86] - The net debt to equity ratio was not applicable as of March 31, 2023, and 2022, as the Group maintained a net cash position on both dates[84] - The Group's net cash position as of March 31, 2023, was approximately HK$303.6 million, an increase from approximately HK$140.3 million in 2022[88] - The gross proceeds from the Share Offer amounted to HK$125 million, with net proceeds of approximately HK$91.8 million after deducting underwriting commissions and related expenses[98] Compliance and Risk Management - The Board has resolved not to recommend the declaration of a final dividend for the year ended 31 March 2023, consistent with the previous year[8] - The Group's financial management is overseen by experienced professionals with extensive backgrounds in accounting and finance[131] - The Company has established the Audit Committee in compliance with the Listing Rules and corporate governance codes[161] - The Audit Committee has reviewed the effectiveness of the Group's risk management and internal control systems on an ongoing basis[149] - The Company does not yet have an internal audit function but engages external consultants to review the adequacy and effectiveness of its internal control systems[149] - The Audit Committee acknowledged the management's progressive implementation of adequate and effective risk management and internal control systems[149] - The Group will review its risk management and internal control systems annually[149] Environmental, Social, and Governance (ESG) Commitment - GC Construction Holdings Limited is committed to reducing greenhouse gas emissions and has set high short-term and long-term targets for this purpose[182] - The company emphasizes the importance of environmental, social, and governance (ESG) factors in its decision-making processes to create value for stakeholders[182] - GC Construction Holdings Limited aims to enhance its internal data collection processes to provide a comprehensive overview of its environmental and social performance[196] - GC Construction Holdings Limited recognizes the need for continuous improvement in its ESG performance to lead the industry as a responsible corporate citizen[182] - The company has established a comprehensive code of conduct to promote transparency and accountability in its business practices[182] - GC Construction Holdings Limited is committed to fostering diversity, equity, and inclusion within its workplace and society[182] - The company acknowledges its responsibilities to evaluate and manage ESG-related risks effectively[182] - GC Construction Holdings Limited aims to collaborate with stakeholders on ESG issues to create a more sustainable future[182]
GC CONSTRUCTION(01489) - 2023 - 年度财报