TIL ENVIRO(01790)

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达力环保(01790) - 2022 - 中期财报
2022-09-21 08:40
Financial Performance - The company reported a revenue of HKD 250 million for the first half of 2022, representing a 15% increase compared to the same period in 2021[45]. - Revenue for the reporting period was approximately HKD 105.8 million, down about 20.0% from HKD 132.3 million in the same period last year[57]. - The net profit after tax for the reporting period was HKD 34.7 million, a decrease from HKD 57.9 million in the previous year[50]. - Revenue from wastewater treatment operations decreased by approximately HKD 22.7 million or about 34.6% to approximately HKD 42.9 million during the reporting period[58]. - Net profit for the period decreased by approximately HKD 23.2 million or 40.1% to about HKD 34.7 million, with earnings per share dropping to HKD 0.03 from HKD 0.06[79]. - The company reported a loss in other comprehensive income of HKD 29,798,000 for the six months ended June 30, 2022, compared to a gain of HKD 73,286,000 in the same period of 2021[155]. - The basic and diluted earnings per share for the six months ended June 30, 2022, were HKD 0.03, down from HKD 0.06 in the previous year[154]. - The company experienced a foreign exchange loss of HKD 64,466,000 during the period, impacting the overall comprehensive income[170]. Operational Efficiency - The gross profit margin improved to 35%, up from 30% in the previous year, reflecting better cost management[45]. - The company aims to reduce operational costs by 10% through process optimization initiatives[45]. - The company aims to enhance operational efficiency and cost optimization in wastewater treatment plants[53]. - The company is planning to focus on upgrading and expanding existing wastewater treatment facilities in collaboration with local authorities[52]. Market Expansion and Growth - The company expects a revenue growth of 10-15% for the full year 2022, driven by increased demand for its services[45]. - The company is planning to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[45]. - A strategic acquisition of a local competitor is under consideration, which could potentially increase the company's customer base by 40%[45]. - The company is exploring potential acquisition opportunities for wastewater treatment assets in Ningxia and other regions of China[53]. Financial Position - Cash and bank balances increased from approximately HKD 88.0 million to approximately HKD 259.0 million, an increase of about HKD 171.0 million or approximately 194.3%[83]. - Total bank borrowings as of June 30, 2022, were approximately HKD 836.3 million, down from HKD 881.2 million as of December 31, 2021, representing a decrease of about HKD 44.9 million or approximately 5.1%[83]. - The debt-to-equity ratio as of June 30, 2022, was approximately 41.7%, a significant decrease from 56.1% as of December 31, 2021[85]. - The net current assets and total assets as of June 30, 2022, were approximately HKD 453.4 million and HKD 1,377.1 million, respectively, compared to HKD 439.0 million and HKD 1,414.0 million as of December 31, 2021[84]. - Total liabilities as of June 30, 2022, were HKD 1,081,423,000, down from HKD 1,180,526,000 as of March 31, 2021[161]. Research and Development - The company has allocated HKD 50 million for research and development in 2022, focusing on sustainable environmental solutions[45]. - As of June 30, 2022, HKD 839 million (71.3%) was allocated for upgrading and expanding existing wastewater treatment facilities, with HKD 12.6 million utilized[129]. - HKD 10.4 million was initially designated for identifying and evaluating new wastewater treatment projects in Yinchuan or other regions in China, with HKD 3.4 million remaining unutilized[129]. Shareholder Information - The company declared an interim dividend of HKD 0.05 per share for the six months ended June 30, 2022, compared to no dividend for the same period in 2021[97]. - Lim Chin Sean holds 750,000,000 shares, representing a 75% equity interest in the company[103]. - Lim Chee Meng also holds 750,000,000 shares, equating to a 75% equity interest[108]. - The equity interests of major shareholders were disclosed in accordance with the Securities and Futures Ordinance[108]. Compliance and Governance - The audit committee consists of one non-executive director and two independent non-executive directors, ensuring oversight of financial reporting and risk management[121]. - The company has adopted a standard code for directors' securities trading, confirming compliance during the reporting period[120]. - The company has not granted any stock options under the stock option plan during the reporting period[125]. - The company has no significant contingent liabilities or unresolved litigation as of June 30, 2022[86].
达力环保(01790) - 2021 - 年度财报
2022-04-22 09:01
Financial Performance - The company recorded revenue of approximately HKD 248.5 million for the reporting period, a decrease of about 18.5% compared to HKD 305.0 million in the previous year[9]. - The profit after tax was approximately HKD 115.3 million, representing a decrease of about 8.9% from HKD 126.5 million in the previous year[13]. - The overall comprehensive income for the year was 158.3 million HKD, down from 195.8 million HKD in the previous year, representing a decrease of approximately 19.1%[39]. - Revenue decreased from approximately HKD 305.0 million in 2020 to approximately HKD 248.5 million in 2021, a decline of about HKD 56.5 million or 18.5%[42]. - The net profit after tax for the year was 115.3 million HKD, a decline from 126.5 million HKD in the previous year, reflecting a decrease of about HKD 11.2 million or 8.9%[56]. - Revenue from wastewater treatment operation services decreased from approximately HKD 129.2 million to approximately HKD 113.0 million, a decrease of about HKD 16.2 million or 12.5%[43]. - Revenue from construction services dropped significantly from approximately HKD 51.1 million to approximately HKD 1.5 million, a decrease of about HKD 49.6 million or 97.1%[43]. - The decrease in revenue was primarily due to reduced construction revenue and the cessation of operations at the first treatment plant on July 14, 2021[31]. Operational Adjustments - The closure of the first treatment plant on July 14, 2021, is not expected to impact the remaining wastewater treatment plants operated by the company[9]. - The company’s operational adjustments included transitioning wastewater inflow to a third-party treatment plant during a testing period[9]. - The company plans to continue monitoring the compensation agreement related to the first treatment plant's closure, which is still under negotiation[9]. - The company plans to focus on expanding or upgrading new water pricing and the first and fourth treatment plants, which will positively contribute to revenue[15]. - The company plans to focus on upgrading and expanding the second and fourth treatment plants in collaboration with local authorities[34]. Future Outlook - The company anticipates facing challenges in the upcoming year due to ongoing COVID-19 impacts and geopolitical uncertainties, particularly from the recent invasion of Ukraine by Russia[14]. - The company remains cautiously optimistic about its financial performance for the fiscal year ending December 31, 2022, despite the closure of the first treatment plant[15]. - The company’s long-term outlook remains positive due to its status as a long-term concessionaire despite external challenges[14]. Cash Flow and Liquidity - The company intends to declare dividends in the near future, depending on cash flow liquidity[15]. - Cash and bank balances decreased by approximately 18.0% from about HKD 107.3 million in 2020 to about HKD 88.0 million in 2021, attributed to a longer receivables turnover period[62]. - The company's liquidity and capital requirements are primarily related to the construction of sewage treatment facilities and operational costs, with net current assets of approximately HKD 439.0 million as of December 31, 2021[66]. - As of December 31, 2021, the company's distributable reserves available for shareholders were approximately HKD 662,191,000, compared to HKD 664,038,000 in 2020[105]. Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2021[80]. - As of December 31, 2021, Lim Chin Sean held 750,000,000 shares, representing 75% of the company's equity[120]. - The company has a stock option plan approved on October 4, 2018, which is valid for 10 years, with approximately 6 years and 8 months remaining[125]. - The maximum number of shares that may be issued upon the exercise of options under the stock option plan is limited to 100,000,000 shares, representing 10% of the total shares issued at the time of listing[126]. Governance and Compliance - The board of directors includes both executive and independent non-executive members, with specific terms for re-election every three years[114]. - The company has adopted a board diversity policy to enhance diversity in terms of gender, age, cultural background, and professional experience[183]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific responsibilities[190]. - The Audit Committee held two meetings during the reporting period to review the audited financial statements for the year ended December 31, 2020, and the external auditor's recommendations[194]. - The company has confirmed compliance with non-competition commitments from its major shareholders as of December 31, 2021[143]. Employee Relations and Safety - The company has implemented comprehensive health and safety policies to ensure a safe working environment for employees, complying with national and local regulations[91]. - During the COVID-19 pandemic, 50% of office employees were allowed to work from home, and various health measures were put in place to protect employees and visitors[92]. - The company has not experienced any strikes or major labor disputes during the reporting period, indicating good employee relations[98]. - The company has a robust employee compensation package, including basic salary, overtime pay, bonuses, and retirement benefits, to attract and retain talent[98]. Environmental Compliance - The company has not faced any penalties or claims related to environmental compliance during the reporting period, demonstrating adherence to environmental laws and regulations[95]. - The company is focused on upgrading and expanding its wastewater treatment facilities, which requires environmental impact assessments and government approvals[95].
达力环保(01790) - 2021 - 中期财报
2021-09-21 08:35
Financial Performance - The company reported a revenue of HKD 250 million for the first half of 2021, representing a 15% increase compared to the same period last year[2]. - Revenue for the reporting period was HKD 132.3 million, up from HKD 108.1 million in the previous year, representing an increase of approximately 22.4%[91]. - Profit after tax rose to HKD 57.9 million, compared to HKD 38.2 million in the same period last year, marking an increase of approximately 51.5%[91]. - The group recorded a gross profit of HKD 96.5 million, with a gross margin improvement from 66.3% to 72.9%[102]. - Revenue increased from approximately HKD 108.1 million to about HKD 132.3 million, representing a growth of approximately 22.4%[104]. - Revenue from wastewater treatment operations rose by approximately HKD 19.3 million or 41.7% to about HKD 65.6 million due to increased wastewater processing volume and RMB appreciation[105]. - Revenue from financial income under franchise service arrangements increased by approximately HKD 5.8 million or 10.0% to about HKD 63.7 million[107]. - Gross profit increased from approximately HKD 71.8 million to about HKD 96.5 million, a rise of approximately 34.4%, with gross margin improving from 66.4% to 72.9%[111]. - Net profit for the period increased by approximately HKD 19.7 million or 51.6% to about HKD 57.9 million[122]. - Basic and diluted earnings per share rose from HKD 0.04 to HKD 0.06, reflecting the increase in net profit attributable to shareholders[127]. Operational Highlights - User data indicates that the number of active users increased by 20% year-on-year, reaching 1.5 million users[2]. - The total wastewater treatment volume increased by approximately 16.5% to 55.2 million cubic meters during the reporting period, compared to 47.4 million cubic meters in the same period last year[88]. - The company plans to focus on the expansion and upgrading of the first, second, and fourth treatment plants in collaboration with local authorities[95]. - The group is exploring potential acquisition opportunities in wastewater treatment assets in Ningxia Yinchuan and other regions of China[99]. - The company has maintained compliance with all national discharge standards and has not encountered any significant quality issues during the reporting period[88]. - The group aims to optimize costs and improve the efficiency of wastewater treatment plants while managing cash flow carefully amid ongoing impacts from the pandemic[99]. - The company has sufficient inventory of consumables to ensure minimal operational disruption during the pandemic[91]. Strategic Initiatives - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 10-15%[2]. - New product development includes the launch of an advanced wastewater treatment technology expected to reduce operational costs by 25%[2]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[2]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance service capabilities and increase customer base by 40%[2]. - The company is investing HKD 50 million in R&D for sustainable technologies over the next two years[2]. Financial Position - Cash and bank balances decreased by approximately 17.3% from HKD 107.3 million as of December 31, 2020, to HKD 88.7 million as of June 30, 2021, attributed to a longer receivables turnover period[132]. - Bank borrowings increased to approximately HKD 866.3 million as of June 30, 2021, from HKD 827.6 million as of December 31, 2020, due to additional long-term loans for facility expansions[133]. - The net current assets and net assets as of June 30, 2021, were approximately HKD 630.1 million and HKD 1,329.1 million, respectively, compared to HKD 502.3 million and HKD 1,255.8 million as of December 31, 2020[136]. - The debt-to-equity ratio was approximately 58.5% as of June 30, 2021, compared to 57.4% as of December 31, 2020[137]. Corporate Governance - The board emphasized the importance of corporate governance and compliance with regulatory standards to maintain investor confidence[2]. - The company is committed to maintaining high levels of corporate governance to enhance shareholder value and protect their interests[185]. - The board will periodically review and assess the company's corporate governance practices to comply with relevant regulations and safeguard shareholder rights[185]. - The audit committee, consisting of one non-executive director and two independent non-executive directors, reviewed the unaudited interim results for the reporting period[180]. - The company has adopted a standard code for securities trading by directors, ensuring compliance during the reporting period[180]. Shareholder Information - As of June 30, 2021, Lim Chee Meng holds 750,000,000 shares, representing a 75% equity interest in Sparkle Century[169]. - Lim Chin Sean also holds 750,000,000 shares in Sparkle Century, equating to a 75% equity interest[169]. - LGB (Malaysia) owns 70% of LGB (HK), which in turn fully owns Sparkle Century, indicating a strong ownership structure[173]. - The equity interests of Lim Chee Meng and Lim Chin Sean are consolidated due to their joint action agreement, affecting the total shares held in Sparkle Century[173]. - No other directors or senior management have disclosed any additional interests in the company's shares or related securities as of June 30, 2021[162]. Other Financial Information - General and administrative expenses decreased by approximately HKD 1.0 million or 13.3% to about HKD 6.5 million[119]. - Financing costs decreased by approximately HKD 2.5 million or 10.9% to about HKD 20.4 million due to successful loan restructuring[120]. - Other income decreased by approximately HKD 3.4 million or 81.0% to about HKD 0.8 million, primarily due to a reduction in VAT refunds[115]. - The total comprehensive income for the period was approximately HKD 73.3 million, compared to about HKD 18.2 million for the previous period[126]. - The total receivables under the franchise service arrangement increased slightly by approximately 0.5% from HKD 1,885.1 million as of December 31, 2020, to HKD 1,894.6 million as of June 30, 2021[128]. - Trade and other receivables rose by approximately HKD 73.7 million or about 18.8% to approximately HKD 464.7 million, primarily due to an increase in trade receivables[131]. - The company did not recommend any interim dividend for the six months ended June 30, 2021[150]. - There were no significant subsequent events reported after the reporting period[149]. - The company did not engage in any purchase, sale, or redemption of its listed securities during the reporting period[177]. - The company has not granted any options under the share option plan during the reporting period, nor are there any unexercised, lapsed, or canceled options[186].
达力环保(01790) - 2020 - 年度财报
2021-04-22 09:03
| --- | --- | --- | |--------------------------------|-------|-------| | | | | | | | | | TIL ENVIRO LIMITED | | | | | | | | 達力環保有限公司 | | | | (於開曼群島註冊成立的有限公司) | | | 股份代號:1790 sister ITTITTI 年報 2020 目 公司資料 60 獨立核數師報告 主席報告書 綜合收益表 4 68 釋義 綜合全面收益表 6 69 管理層討論及分析 綜合財務狀況表 9 70 董事會報告 綜合權益變動表 18 72 30 企業管治報告 73 綜合現金流量表 2 | --- | --- | --- | --- | --- | --- | --- | |-------|----------------------------|-------|-------|------------------|-------|-------| | | | | | | | | | 41 | 董事及高級管理層之履歷詳情 | | 74 | 綜合財務報表附註 | | | | 45 ...
达力环保(01790) - 2020 - 中期财报
2020-09-17 08:35
Financial Performance - The company reported a revenue of HKD 250 million for the first half of 2020, representing a 15% increase compared to the same period in 2019[1] - Total revenue for the reporting period was approximately HKD 108.1 million, a decrease of about 30% from HKD 154.5 million in the same period last year[93] - The profit after tax for the reporting period was HKD 38.2 million, compared to HKD 43.8 million in the same period last year, reflecting a decline of approximately 12.7%[93] - Revenue from sewage treatment operation services decreased by approximately 24% to HKD 46.3 million, primarily due to a reduction in sewage volume processed[102] - Revenue from construction services dropped significantly by approximately 97% to HKD 1.1 million, attributed to the nearing completion of the expansion project for the fourth treatment plant[102] - Financial income from franchise service arrangements increased by approximately 11% to HKD 57.9 million, driven by an increase in receivables[103] - Net profit decreased from approximately HKD 43.8 million to about HKD 38.2 million, a decrease of approximately HKD 5.6 million or 13%[113] - Gross profit increased from approximately HKD 63.8 million to about HKD 71.8 million, an increase of approximately HKD 8.0 million or 13%, with gross margin rising from 41% to 66%[106] - Other income decreased from approximately HKD 22.5 million to about HKD 4.2 million, a reduction of approximately HKD 18.3 million or 81%, primarily due to a one-time cash reward received in the previous period[108] - General and administrative expenses decreased from approximately HKD 10.0 million to about HKD 7.5 million, a reduction of approximately HKD 2.5 million or 25%[110] - Financing costs increased from approximately HKD 21.8 million to about HKD 22.9 million, an increase of approximately HKD 1.1 million or 5% due to higher interest expenses from additional loans[110] Operational Developments - User data indicates that the number of active users increased by 20% year-on-year, reaching 1.5 million users[1] - The company expects a revenue growth of 10% for the second half of 2020, driven by increased demand for its services[1] - New product development includes the launch of an advanced wastewater treatment technology, projected to reduce operational costs by 25%[1] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2022[1] - A strategic acquisition of a local competitor is in progress, which is expected to enhance the company's service capabilities and customer base[1] - The company plans to focus on cost optimization and improving the efficiency of sewage treatment plants in the second half of 2020[96] - The company is actively seeking merger and acquisition opportunities for mature sewage treatment assets in Ningxia and other regions of China to strengthen its market position[96] - The company is exploring partnerships with local governments to enhance service delivery and expand its operational footprint[1] Cash Flow and Financial Position - Cash and bank balances decreased from approximately HKD 186.3 million to about HKD 159.0 million due to higher net repayments of loans[117] - Bank borrowings in RMB amounted to approximately HKD 778.4 million, a decrease from HKD 794.2 million, with short-term loans increasing to HKD 18.9 million[118] - The company’s retained earnings increased to 418,058 thousand HKD as of June 30, 2020, up from 316,010 thousand HKD as of June 30, 2019, reflecting a growth of approximately 32.3%[184] - The company reported a currency translation loss of HKD 20,009,000 for the six months ended June 30, 2020, compared to a loss of HKD 1,625,000 in the same period of 2019[175] - The company incurred a foreign exchange loss of (20,009) thousand HKD during the period, impacting the overall equity attributable to shareholders[184] - The company’s financing activities resulted in a net cash outflow of (23,836) thousand HKD for the six months ended June 30, 2020, compared to a net inflow of 6,352 thousand HKD in the same period of 2019[187] Future Outlook - Future outlook remains positive, with management confident in achieving long-term growth targets despite current market challenges[1] - The company aims to stabilize cash flow management during the ongoing COVID-19 pandemic[96] - The company is evaluating the impact of new accounting standards and amendments that will be effective after January 1, 2021, which may affect future financial reporting[196] - The company continues to face various financial risks, including market risk, credit risk, and liquidity risk, which are essential for ongoing financial management[199] Corporate Governance - The company has complied with all applicable corporate governance code provisions during the reporting period[158] - The board of directors confirmed compliance with the standard code of conduct for securities transactions during the reporting period[154] - The company has established an audit committee to review and supervise financial reporting procedures and risk management systems[155] Employee and Asset Information - The company had 155 full-time employees as of June 30, 2020, an increase from 154 as of December 31, 2019[127] - As of June 30, 2020, the company's net current assets and net assets were approximately HKD 373.2 million and HKD 1,078.1 million, respectively, compared to HKD 330.4 million and HKD 1,060.0 million as of December 31, 2019[119] - The debt-to-equity ratio as of June 30, 2020, was approximately 57%, unchanged from December 31, 2019[121] - The company had no significant contingent liabilities or unresolved litigation as of June 30, 2020[122] - The company had no significant investments as of June 30, 2020[129] - The company has not entered into any off-balance sheet arrangements and does not expect to do so[123]
达力环保(01790) - 2019 - 年度财报
2020-04-23 09:12
Financial Performance - The company recorded revenue of approximately HKD 515.4 million for the year ended December 31, 2019, representing an increase of about 4.6% compared to HKD 492.5 million in 2018[8]. - Profit for the year was approximately HKD 107.7 million, an increase of 53.6% from HKD 70.1 million in 2018, primarily due to the absence of one-time listing expenses and a cash reward of approximately HKD 17.6 million from the Ningxia Finance Department[8]. - The company's revenue for the year was HKD 515.4 million, an increase of approximately 5% from HKD 492.5 million in the previous year, while net profit after tax rose to HKD 107.7 million from HKD 70.1 million[27][34]. - Revenue from sewage treatment construction services increased by approximately 10% to HKD 274.2 million, primarily due to the expansion of the fourth treatment plant[34]. - Revenue from financial income under franchise service arrangements rose by approximately 9% to HKD 103.1 million, attributed to increased receivables from expansion projects[34]. - Sales cost increased from approximately HKD 316.4 million for the year ended December 31, 2018, to approximately HKD 344.3 million for the year ended December 31, 2019, representing an increase of about HKD 27.9 million or approximately 9%[36]. - Gross profit decreased from approximately HKD 176.1 million for the year ended December 31, 2018, to approximately HKD 171.1 million for the year ended December 31, 2019, a decrease of about HKD 5.0 million, with the gross margin declining from 36% to 33%[37]. - Other income increased from approximately HKD 4.1 million for the year ended December 31, 2018, to approximately HKD 23.0 million for the year ended December 31, 2019, an increase of about HKD 18.9 million or approximately 461%[39]. - Net other income decreased from approximately HKD 5.4 million for the year ended December 31, 2018, to approximately HKD 4.5 million for the year ended December 31, 2019, a decrease of about HKD 0.9 million or approximately 17%[40]. - General and administrative expenses increased from approximately HKD 17.9 million for the year ended December 31, 2018, to approximately HKD 20.6 million for the year ended December 31, 2019, an increase of about HKD 2.7 million or approximately 15%[41]. - Financing costs decreased from approximately HKD 43.6 million for the year ended December 31, 2018, to approximately HKD 42.6 million for the year ended December 31, 2019, a decrease of about HKD 1.0 million or approximately 2%[42]. - Earnings per share (basic and diluted) for the year ended December 31, 2019, was HKD 0.11, compared to HKD 0.26 for the year ended December 31, 2018, a decrease attributed to an increase in the number of ordinary shares issued[46]. - Total cash and bank balances decreased by approximately 37% to about HKD 186.3 million as of December 31, 2019, from approximately HKD 296.9 million as of December 31, 2018, primarily due to longer accounts receivable turnover periods[48]. - Bank borrowings amounted to approximately HKD 794.2 million as of December 31, 2019, compared to HKD 763.7 million as of December 31, 2018[49]. - As of December 31, 2019, the company's net current assets and net assets were approximately HKD 330.4 million and HKD 1,060.0 million, respectively, compared to HKD 421.9 million and HKD 970.0 million in 2018[50]. - The debt-to-equity ratio as of December 31, 2019, was approximately 57%, an increase from 48% in 2018[51]. - The company did not recommend the payment of a final dividend for the year ended December 31, 2019[68]. - The company has no significant acquisitions or disposals related to subsidiaries, associates, or joint ventures for the year ended December 31, 2019[64]. - The company has no significant investments or future capital asset plans as of December 31, 2019[66]. - The company generated over 90% of its revenue from its largest customer, the Yinchuan Construction Bureau, posing a risk to its financial performance[75]. - The net proceeds from the share issuance in November 2018 amounted to approximately HKD 104.7 million after deducting underwriting fees and estimated expenses[58]. - The company has no significant contingent liabilities or unresolved litigation as of December 31, 2019[56]. - The company has approximately HKD 672,636,000 available for distribution to shareholders as of December 31, 2019, compared to HKD 687,012,000 in 2018[90]. Operational Performance - Total wastewater treatment volume decreased to approximately 100.1 million cubic meters, a reduction of about 11.7% from 113.4 million cubic meters in 2018, attributed to a decline in inflow to treatment plants[8]. - The total daily sewage treatment capacity increased to 475,000 cubic meters, with the expansion of the fourth treatment plant adding an additional 100,000 cubic meters[26]. - The expansion of the fourth treatment plant was completed on schedule and passed environmental acceptance by local government in December 2019[9]. - The expansion project for the second treatment plant, which would add 25,000 cubic meters of capacity, has been postponed pending further notice from the local government[26]. - The company is focusing on new water pricing and the upgrade and expansion of existing sewage treatment facilities[31]. - The company is actively complying with all national discharge standards and has not encountered any significant quality issues or service interruptions during the year[27]. - The company has implemented various quality control measures to ensure compliance with relevant discharge standards at its wastewater treatment facilities[79]. - The company has not faced any claims or fines for failing to comply with environmental permits and requirements during the reporting period[79]. - The company has established a comprehensive workplace safety policy and has complied with applicable health and safety laws without incurring any sanctions[78]. - The company has a stable relationship with suppliers, ensuring no major shortages of materials or equipment during the reporting period[86]. - The company has a human resources management strategy that includes competitive compensation packages and performance evaluation plans to reward outstanding employees[84]. - The company has not experienced any strikes or significant labor disputes that could disrupt its operations during the reporting period[84]. Strategic Initiatives - The company aims to capitalize on opportunities in the wastewater treatment sector as local governments expand coverage to areas with lower treatment facility penetration[13]. - The company is focused on expanding its operations in the environmental sector, particularly in wastewater management[22]. - The company aims to leverage its expertise in public utilities and infrastructure to explore new market opportunities[22]. - The company is actively involved in strategic partnerships to enhance its operational capabilities and market reach[22]. - The company is committed to continuous improvement and innovation in its service offerings to meet customer needs[22]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service portfolio[22]. - The company has implemented remote flexible work arrangements for employees as a precautionary measure against COVID-19, ensuring minimal operational disruption[31]. - There is an increasing demand for wastewater treatment facilities driven by stricter environmental regulations and a focus on sustainability[13]. - The company expressed gratitude to the management team and stakeholders for their continued support and trust in driving sustainable business growth[14]. - The company is committed to enhancing shareholder value through sustainable development initiatives[14]. Corporate Governance - The company adheres to corporate governance standards as outlined in the listing rules and has adopted the code of corporate governance practices[80]. - The board consists of five directors, including the chairman Lim Chin Sean and CEO Wong Kok Sun, ensuring a balanced composition with rich industry knowledge and experience[154]. - The company has established committees, including the audit committee, remuneration committee, and nomination committee, to assist the board in fulfilling its responsibilities[156]. - The audit committee consists of one non-executive director and two independent non-executive directors, ensuring oversight of financial reporting and risk management[185]. - The nomination committee is responsible for recommending candidates for board appointments and assessing the effectiveness of the diversity policy[189]. - The board has adopted a diversity policy to enhance board member diversity, considering factors such as gender, age, cultural background, and professional experience[178]. - The company has confirmed compliance with all applicable corporate governance code provisions during the reporting period[151]. - Directors must retire and seek re-election at least once every three years at the annual general meeting, ensuring accountability[162]. - The board meets regularly to discuss overall strategy, financial performance, internal controls, and risk management[161]. - Directors are required to participate in continuous professional development to enhance their knowledge and skills, ensuring informed contributions to the board[175]. - The company secretary, Ms. Xu Xin'er, confirmed compliance with the professional training requirements as per Listing Rule 3.29 during the reporting period[198]. - The board is responsible for reviewing and monitoring compliance with corporate governance policies and regulations[197]. Shareholder Information - Lim Chee Meng holds a 75% stake in the company, equivalent to 750,000,000 shares[118]. - The company has a stock option plan approved on October 4, 2018, allowing for the issuance of up to 100,000,000 shares, which is 10% of the total shares issued at listing[111]. - No stock options were granted during the reporting period, and there are no unexercised, expired, or canceled options[115]. - The compensation range for senior management is between 0 HKD and 750,000 HKD, with two individuals in the lower range and one in the higher range[105]. - The company has a controlled entity interest in LGB (Malaysia) and LGB (HK), each holding 75% of the issued share capital of Sparkle Century[119]. - The stock option plan allows for a maximum issuance of shares to any participant not exceeding 1% of the total issued shares in any twelve-month period[114]. - The company’s major shareholders include Lim Chee Meng and LGB (Malaysia), both holding 750,000,000 shares, representing 75% of the total[118]. - The stock option plan is designed to incentivize eligible participants to optimize performance for the benefit of the group[111]. - The company has not disclosed any new product developments or market expansion strategies in the current reporting period[116]. - The company reported a net amount of approximately HKD 104.7 million from the share sale, with HKD 76.5 million already utilized and HKD 28.2 million remaining[137]. - Approximately HKD 71.3 million of the utilized funds were allocated for upgrading and expanding existing facilities[139]. - The company plans to use around HKD 10.4 million for identifying and evaluating new wastewater treatment projects in China by October 2021[141]. - The company has not engaged in any significant related party transactions during the fiscal year ending December 31, 2019[126]. - Sales to the top five customers accounted for approximately 100% of total sales, with the largest customer representing about 99%[136]. - Purchases from the top five suppliers constituted around 75% of total procurement, with the largest supplier accounting for approximately 30%[136]. - The company has not purchased, sold, or redeemed any of its listed securities during the fiscal year ending December 31, 2019[132]. - The independent auditor, PwC, will be proposed for reappointment at the 2020 annual general meeting[148]. - The company maintains the required public float as per listing rules[144]. - No significant events affecting the company have occurred since December 31, 2019, apart from those disclosed in the financial statements[143].
达力环保(01790) - 2019 - 中期财报
2019-09-18 08:35
Financial Performance - The company reported a revenue of HKD 250 million for the first half of 2019, representing a 15% increase compared to the same period in 2018[4]. - Revenue decreased from approximately HKD 195.0 million to about HKD 154.5 million, a decline of approximately HKD 40.5 million or 21%[81]. - The company reported a revenue of HKD 154,539,000 for the six months ended June 30, 2019, a decrease of 20.7% compared to HKD 195,046,000 in the same period of 2018[167]. - Gross profit decreased from approximately HKD 84.6 million to about HKD 63.8 million, a reduction of approximately HKD 20.8 million or 25%, primarily due to decreased revenue from wastewater treatment construction services[89]. - Gross profit for the same period was HKD 63,815,000, down from HKD 84,577,000, reflecting a decline of 24.5%[167]. - Profit for the period increased from approximately HKD 23.6 million to about HKD 43.8 million, representing a growth of approximately HKD 20.2 million or 86%[99]. - The net profit attributable to the company's owners was HKD 43,831,000, compared to HKD 23,646,000 in the previous year, representing an increase of 85.3%[170]. - The total comprehensive income for the period was HKD 42.2 million, compared to HKD 14.5 million for the same period in 2018[78]. - Operating profit increased to HKD 75,639,000, up 20.8% from HKD 62,607,000 year-over-year[167]. Operational Efficiency - The company has implemented new strategies to improve operational efficiency, aiming for a 15% reduction in costs by the end of 2019[4]. - Operating income from wastewater treatment services decreased from approximately HKD 65.2 million to about HKD 60.8 million, a reduction of about HKD 4.4 million or 7%[81]. - Operating costs for wastewater treatment increased from approximately HKD 31.9 million to about HKD 46.2 million, an increase of about HKD 14.3 million or 45%[86]. - The construction service revenue dropped from approximately HKD 77.9 million to about HKD 38.9 million, a decrease of about HKD 39.0 million or 50%[81]. - The construction costs decreased from approximately HKD 70.8 million to about HKD 35.4 million, a reduction of about HKD 35.4 million or 50%[85]. Market Expansion and Development - User data indicates that the company has successfully expanded its customer base, with a 20% increase in active users year-over-year[4]. - The company projects a revenue growth of 10% for the second half of 2019, driven by increased demand for its services[4]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 25% increase in market share by 2021[4]. - New product development includes the launch of an upgraded wastewater treatment technology, expected to enhance efficiency by 30%[4]. - A strategic acquisition of a local competitor is under consideration, which could potentially increase the company's operational capacity by 40%[4]. - The company plans to invest HKD 50 million in research and development for innovative environmental solutions in 2020[4]. Sustainability Initiatives - The management highlighted a focus on sustainability initiatives, with a goal to reduce carbon emissions by 20% over the next three years[4]. Financial Position - The total assets as of June 30, 2019, were HKD 2,020,312,000, an increase from HKD 1,974,685,000 at the end of 2018[174]. - The company's total equity rose to HKD 1,012,185,000 from HKD 969,979,000, marking a growth of 4.3%[174]. - Cash and bank balances as of June 30, 2019, were approximately HKD 291.4 million, down from HKD 296.9 million as of December 31, 2018[102]. - The group’s net current assets and net assets were approximately HKD 454.3 million and HKD 1,012.2 million, respectively, as of June 30, 2019[105]. - The debt-to-equity ratio was approximately 49% as of June 30, 2019, compared to 48% as of December 31, 2018[106]. Governance and Compliance - The company has established an audit committee to oversee financial reporting and risk management, consisting of one non-executive director and two independent non-executive directors[142]. - The company has complied with all applicable corporate governance code provisions during the reporting period[145]. - The company has confirmed that all directors adhered to the standard code of conduct for securities transactions during the reporting period[142]. - The group has not restated comparative figures for the 2018 reporting period upon the initial application of the new accounting standards[200]. Employee Information - The group employed 149 full-time employees as of June 30, 2019, down from 158 on December 31, 2018, with employee benefits expenses amounting to approximately HKD 4.6 million for the reporting period[116]. - The employee compensation structure includes basic salary, overtime pay, bonuses, retirement benefits, and other employee welfare[116].
达力环保(01790) - 2018 - 年度财报
2019-04-25 08:52
Financial Performance - The company recorded a revenue of approximately HKD 492.5 million for the year ended December 31, 2018, representing a growth of about 34% compared to HKD 366.4 million in 2017[9]. - Net profit for the year was approximately HKD 89.2 million, an increase of 51% from HKD 58.9 million in 2017, despite one-time listing expenses of about HKD 19.0 million[9]. - Revenue increased from approximately HKD 366.4 million in 2017 to approximately HKD 492.5 million in 2018, representing a year-on-year increase of about 34%[27]. - Revenue from wastewater treatment operation services rose from approximately HKD 76.6 million in 2017 to approximately HKD 142.7 million in 2018, an increase of about 86%[27]. - Revenue from wastewater treatment construction services increased from approximately HKD 197.3 million in 2017 to approximately HKD 248.7 million in 2018, a rise of about 26%[27]. - Gross profit increased from approximately HKD 132.8 million in 2017 to approximately HKD 176.1 million in 2018, a year-on-year increase of about 33%[30]. - Total comprehensive income for the year was HKD 28.0 million in 2018, compared to HKD 101.2 million in 2017[25]. - The company's profit for the year increased from approximately HKD 58.9 million for the year ended December 31, 2017, to approximately HKD 70.1 million for the year ended December 31, 2018, representing a growth of about 19%[38]. - Basic and diluted earnings per share for the year ended December 31, 2018, were HKD 0.26, down from HKD 0.79 for the year ended December 31, 2017, mainly due to an increase in the number of ordinary shares issued[39]. Operational Capacity and Expansion - Daily wastewater treatment capacity increased to 375,000 cubic meters, with all plants upgraded to Class A discharge standards by the end of 2018[8]. - The company plans to expand its fourth treatment plant by an additional 100,000 cubic meters, with completion expected by the end of 2020[8]. - The total daily wastewater treatment capacity increased to 375,000 cubic meters, with all treatment plants upgraded to Class A discharge standards[22]. - The construction project to expand the fourth treatment plant, which will add 100,000 cubic meters of treatment capacity, began in the second half of 2018 and is expected to be completed by the end of 2020[22]. - The total volume of treated wastewater for the year was approximately 113,396,000 cubic meters, a decrease of about 6% compared to the previous year, primarily due to a 15-day operational pause for upgrades at the first treatment plant[22]. Environmental Commitment - The company received recognition from the local government in Yinchuan for its environmental management efforts, highlighting its commitment to sustainable practices[9]. - The local government aims to achieve 100% wastewater treatment rate by 2020, which aligns with the company's operational goals[11]. - The company will continue to collaborate with the Yinchuan local government to enhance environmental awareness in the wastewater treatment industry[11]. - The company is positioned to benefit from the Chinese government's increased focus on environmental protection and wastewater treatment standards[11]. - The group has implemented various quality control measures to ensure compliance with environmental regulations, with no claims or fines reported during the reporting period[75]. Financial Management and Capital Structure - The net proceeds from the listing amounted to approximately HKD 104.7 million, with HKD 83.9 million allocated for the expansion of existing facilities[8]. - Cash and bank balances increased by approximately 113% to about HKD 301.5 million in 2018, up from HKD 141.5 million in 2017, mainly due to net proceeds from the initial public offering[42]. - The company's bank borrowings as of December 31, 2018, were approximately HKD 763.7 million, slightly down from HKD 768.5 million in 2017[43]. - The asset-liability ratio as of December 31, 2018, was approximately 33%, a significant improvement from 87% in 2017[46]. - The company had capital commitments of approximately HKD 88.7 million related to the upgrade and expansion of the sewage treatment plant as of December 31, 2018, down from HKD 200.5 million in 2017[47]. - The total receivables under the franchise service arrangement increased by approximately 9% from HKD 1,404.9 million in 2017 to HKD 1,531.8 million in 2018, driven by service fees collected[41]. Shareholder and Governance Matters - The board did not recommend the payment of a final dividend for the year ended December 31, 2018, consistent with 2017[61]. - The company successfully listed its shares on the main board of the Stock Exchange on November 29, 2018, raising a total cash consideration of HKD 145 million before expenses[78]. - The company has established a stock option plan allowing directors and employees to participate, indicating a strategy to align employee interests with company performance[56]. - The company has adopted a share option scheme effective from October 4, 2018, which will last for 10 years[107]. - The total number of shares that can be issued under the share option scheme is capped at 100,000,000, which is 10% of the total shares issued at the time of listing[105]. - The company has a policy of avoiding over-reliance on a single supplier by collaborating with a range of recognized suppliers[83]. - The company has established a comprehensive risk management policy to identify, assess, and manage operational risks[177]. - The board consists of a balanced composition with independent non-executive directors providing significant time and expertise to the company's business[143]. - The company has appointed three independent non-executive directors, two of whom possess relevant professional accounting qualifications and financial management expertise[146]. Employee and Management Information - As of December 31, 2018, the group had 158 full-time employees, with employee benefits expenses amounting to approximately HKD 17.7 million, an increase from HKD 13.8 million in 2017[56]. - The company's executive directors have service contracts with an initial term of one year, while non-executive directors have contracts for three years[96]. - All directors are encouraged to participate in continuous professional development activities, with each director attending three relevant training sessions in the year ending December 31, 2018[152]. Risk Management and Compliance - The board of directors is responsible for the effectiveness of the company's internal control and risk management systems, which are reviewed annually by external consultants[183]. - The company has no internal audit function but relies on the board to oversee internal controls due to the scale and complexity of its operations[183]. - The company emphasizes maintaining high transparency and timely information disclosure to investors, adhering to listing rules[193]. - The company has a structured process for handling and disclosing inside information to comply with relevant laws and regulations[184]. - The company is required to report its environmental, social, and governance data annually, with the report to be published within three months after the annual report[195].