I am pleased to present the annual report of In Construction Holdings Limited (the “Company”) and its subsidiaries (collectively “The Group”) for the year ended 31 March 2024 (the “Financial Year 2023/24”).
Its now more than 1 year since the end of the COVID-19 pandemic and Hong Kong’s economy is recovering albeit slowly. During this year, we have been awarded several sizeable foundation work projects which are now in full swing. Though tender prices over the past few years have gradually increased, margins remain tight.
Our Group aims at creating both economic and sustainable value to our customers. We continue to serve Hong Kong’s building and construction industries by offering quality and flexible solutions to our customers. From past experience, technical knowledge together with quality control and established procedures, our management team applies our abilities to overcome difficult and increasingly complex issues on construction sites projects, succeed in gaining credibility and trusts of our existing and new customers. We continue to gain trusts and supports of our clients and business partners whom we have been working with over the years.
This year, mindful of our Environmental, Social and Governance (“ESG”) responsibility and with the encouragement of clients, we started using “B100 Biodiesel”, based on Used Cooking Oil Methyl Ester (UCOME) to power our generators used in some plants and machineries in one of our newly awarded project. By turning waste to energy, we not only got an economical and cost-effective green mobile electricity by using less fuel, but also reduced Greenhouse Gas Emissions.
Despite the above positive factors, the construction industry is subject to both internal and external challenges. These include rising cost of materials and labours, environmental concerns and trade tensions. Increase in labour cost is mainly due to shortage of skilled labour, aging workforce as younger generations are reluctant in joining the construction industry.
During the year, our financial result had been adversely affected by loss-making projects carried over from last year. The losses were due to the provisions of the liquidated and ascertained damages for the estimated delay in the completion such as inclement weather, unforeseen administrative delays and underground conditions. On the latter, we will and have sought time extension under the Contract as well as using our best endeavor to overcome difficulties to minimise delays.
Notwithstanding the above mentioned, we are pleased to say that in this financial year, we had been awarded 3 new contracts with an aggregate contract sum of HK$700.5 million as compared to 2 new contracts in the last financial year with an aggregate contract sum of HK$156.1 million.
Looking ahead, with the Government’s commitment of increasing the land supply for the development of the infrastructures, we are hopeful that the construction industry shall perform better in the coming year. We shall continue to adhere to our strategy of focusing on “design and build” projects to maintain the profit margin to safeguard our shareholders’ interests.
On behalf of our board, I would like to express our sincere gratitude to our management team and all our staff for their hard work and dedication, as well as our shareholders, business partners and other professional parties for their continuous support.
Resignation of Independent Non-executive Director and New Appointment
Mr. Yau Chi Man Norman (also known as Iao Chi Meng) resigned effective from 16 April 2024. He has been with us for years and during his tenure, he has contributed tremendously to the Group’s business development and corporate governance. On behalf of the Board, I would like to express our deepest gratitude to him and wish him a happy and healthy life.
Ms. Mok Kam Sheung was invited to join our Board as an independent non-executive director on 16 April 2024. As a lawyer, she is currently a partner of a law firm. On behalf of the Board, I would like to extend our warmest welcome to Ms. Mok.
