Financial Performance - The Group's revenue for the year amounted to approximately HK$212.3 million, representing a decrease of approximately 38.6% from the previous year[15]. - Profit attributable to owners of the Company for the year was approximately HK$16.7 million[15]. - Revenue for the year was approximately HK$212.3 million, representing a decrease of approximately 38.6% from HK$345.6 million for the year ended 31 May 2021[51]. - Gross profit decreased by approximately 46.1% to approximately HK$30.2 million, with the overall gross profit margin declining from approximately 16.2% to approximately 14.2%[51]. - Revenue from marine construction works was approximately HK$138.9 million, representing a decrease of approximately 16.8% compared to the previous year[34]. - Revenue from other civil engineering works amounted to approximately HK$60.0 million, accounting for approximately 28.3% of total revenue, down from approximately 46.4% the previous year[36]. - Gross profit from other civil engineering works decreased by approximately 82.7% to approximately HK$2.3 million, with a gross profit margin falling from approximately 8.1% to approximately 3.8%[37]. - Revenue from vessel chartering services was approximately HK$13.4 million, a decrease of approximately 27.0% from HK$18.3 million[43]. - The total comprehensive income attributable to equity shareholders decreased by approximately 55.6% to approximately HK$16.7 million from HK$37.6 million[51]. - Other income decreased from approximately HK$2.7 million to approximately HK$1.7 million, primarily due to a reduction in government subsidies[45]. Business Development and Strategy - The Group successfully tendered and was awarded a marine construction project as the main contractor with a total contract sum of approximately HK$34.7 million[14]. - The Group established a PRC subsidiary in June 2022 to explore potential business opportunities in the e-commerce sector[14]. - The Group's strategy focuses on building a diversified business portfolio, including construction and e-commerce, to achieve stable long-term returns for shareholders[27]. - The Group aims to identify and seize suitable growth opportunities in the coming years[21]. - The Group will continue to explore suitable business opportunities and expand its customer base to adapt to changing customer demands[25]. - The Group aims to continue seeking new opportunities to develop its existing business[146]. - The management emphasizes the importance of obtaining new projects from both existing and new potential customers[152]. Impact of COVID-19 - The COVID-19 pandemic has adversely affected market sentiment and the local economy, prompting the Group to explore suitable business opportunities beyond the Hong Kong market[20]. - The ongoing uncertainties from COVID-19 are expected to temporarily affect the economic recovery of Hong Kong[24]. - The Group will closely monitor the impact of the COVID-19 pandemic on its operations, although no prolonged material impact is expected[156]. Financial Management and Resources - The Group has funded its liquidity and capital requirements primarily through internal cash resources[52]. - As of May 31, 2022, the Group's cash and bank balances were approximately HK$85.2 million, a decrease of about 31.6% from HK$124.5 million as of May 31, 2021[53][56]. - The Group's interest-bearing borrowings were approximately HK$1.0 million, down from HK$1.6 million as of May 31, 2021[53][56]. - The gearing ratio as of May 31, 2022, was approximately 0.5%, a decrease of about 37.5% from 0.8% in the previous year[53][56]. - The Board resolved not to recommend any dividend for the year, compared to approximately HK$25.0 million in the previous year[54][57]. Management and Governance - The company has a strong management team with over 40 years of combined experience in the engineering and construction industry[110]. - The management team includes professionals with advanced degrees and certifications in their respective fields[108]. - The company has established a robust governance structure with independent directors overseeing key committees[107]. - Mr. Wong is responsible for financial management and day-to-day operations, with a background in accountancy and extensive experience in listed companies[102]. - Mr. Luo has extensive experience in internet software development and is focused on the e-commerce sector[101]. Customer and Supplier Relationships - The largest customer accounted for approximately 23.7% of total revenue, down from 33.0% in the previous year[191]. - The five largest customers contributed approximately 75.1% of total revenue, a decrease from 84.5% in the previous year[191]. - The largest subcontractor represented about 24.6% of total direct costs, down from 35.9% in the previous year[192]. - The five largest subcontractors accounted for approximately 54.3% of total direct costs, a decrease from 78.6% in the previous year[192]. - The largest supplier contributed approximately 2.9% of total direct costs, an increase from 1.9% in the previous year[192]. - The five largest suppliers accounted for about 8.4% of total direct costs, up from 5.3% in the previous year[192]. Environmental and Social Responsibility - The Group did not record any material non-compliance with environmental requirements during the Year, avoiding prosecution or penalties[164]. - The Group has not made any charitable donations during the Year, consistent with the previous year[180]. - The Group recognizes employees as valuable assets and provides competitive remuneration and development opportunities[167].
天成控股(新)(02110) - 2022 Q4 - 年度业绩