ECI TECH(08013) - 2024 - 年度财报

Company Information The company's board comprises three executive and four independent non-executive directors, with Dr. Ng Tai Wing serving as Chairman and CEO - The company's board of directors consists of three executive directors and four independent non-executive directors, with Dr. Ng Tai Wing serving as Chairman and Chief Executive Officer[6] - The company has established Audit, Remuneration, and Nomination Committees, each chaired by an independent non-executive director[7] - The company's registered public interest entity auditor changed from Shinewing (HK) CPA Limited to Ascent Partners CPA Limited on July 25, 2024[7] Financial Highlights The company reported a 15.1% revenue increase to HKD 200.27 million and a 59.1% profit increase to HKD 8.95 million for the year ended August 31, 2024 Annual Financial Performance for the Year Ended August 31 | Indicator | Year Ended August 31, 2024 (HKD) | Year Ended August 31, 2023 (HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 200,265,000 | 174,012,000 | +15.1% | | Gross Profit | 49,811,000 | 40,595,000 | +22.7% | | Profit for the Year | 8,948,000 | 5,624,000 | +59.1% | - The Board does not recommend paying a final dividend for the year ended August 31, 2024, consistent with the previous year[13] Chairman's Statement The Group's revenue increased by 15.09% to approximately HKD 200.27 million, with consolidated profit rising to HKD 8.95 million, driven by strong performance in maintenance, large-scale projects, security guarding, and electric vehicle charging businesses - For the current fiscal year, the Group's revenue increased by approximately 15.09% to approximately HKD 200.27 million, and consolidated profit for the year increased to approximately HKD 8.95 million[15] - Business highlights include: - Maintenance Business: Secured a major contract with the Drainage Services Department and continued to provide services for the Hong Kong-Zhuhai-Macao Bridge and hospitals - Large-scale Projects: Participated in the installation of the Hong Kong International Airport Three-Runway System and completed projects for Regal Garden and Hong Kong Post Headquarters Building - Security Guarding Services: Continued business growth, providing services for Tivoli Garden and undertaking security services for major events like West Kowloon Cultural District Christmas Town and Standard Chartered Marathon - Electric Vehicle Charging Business: Commenced operations at Residence Oasis and Shui On Centre, and will continue to seek expansion opportunities[15][16] - The Group's future development strategy is to provide one-stop security services and solutions to both public and private sectors to optimize competitive advantages and enhance shareholder value[16] Management Discussion and Analysis The Group's core business involves providing Extra-Low Voltage (ELV) solutions in Hong Kong, with significant project completions and progress in security guarding and EV charging, aiming for sustainable growth through one-stop solutions Business Review and Prospects The Group's core business is providing ELV solutions in Hong Kong, completing major projects and advancing in security and EV charging, with future focus on ELV maintenance, security event expansion, and EV charging station growth for sustainable one-stop solutions - The Group primarily provides Extra-Low Voltage (ELV) solutions for central monitoring systems, including CCTV, access control, and car park systems, serving both public and private sector clients[20] - Major projects completed during the reporting period include the access control and CCTV systems for Regal Garden and ELV systems for the Hong Kong Post Headquarters Building[20] - Future outlook: - ELV Business: Focus on bidding for maintenance service contracts and strengthening client relationships - Security Guarding Business: Actively seek to expand the portfolio of event projects - Electric Vehicle Charging Business: Continue to seek opportunities to increase the number of charging stations[22][23] Financial Review For the year ended August 31, 2024, Group revenue grew by 15.09% to approximately HKD 200.27 million, driven by increased installation projects and security guarding services, leading to a significant 59.10% increase in profit for the year to HKD 8.95 million Overview of Annual Financial Performance (For the Year Ended August 31) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 200,265 | 174,012 | +15.09% | | Cost of Sales | 150,454 | 133,417 | +12.77% | | Gross Profit | 49,811 | 40,595 | +22.70% | | Administrative Expenses | 41,089 | 35,604 | +15.41% | | Profit for the Year | 8,948 | 5,624 | +59.10% | - Revenue growth primarily resulted from ELV system installations at Hong Kong Post Headquarters Building, access control and CCTV system installations at Regal Garden, and increased security guarding services at Tivoli Garden[24] - The Group holds 1,125,000 shares of Allied Environmental Consultants Limited (8320), with a fair value of HKD 0.11 million as of the end of the reporting period, representing 0.11% of the Group's total assets[31] Financial Position and Resources As of August 31, 2024, the Group's financial position is robust, with bank balances and cash increasing to HKD 31.93 million, interest-bearing bank borrowings at HKD 5.08 million, and a slight decrease in the gearing ratio to 0.10 times Summary of Financial Position (As at August 31) | Indicator | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Bank Balances and Cash | 31,932 | 21,709 | | Interest-bearing Bank Borrowings | 5,077 | 4,000 | | Gearing Ratio | 0.10 times | 0.11 times | - The Board resolved not to declare a final dividend for the year ended August 31, 2024[35] - As of the end of the reporting period, approximately HKD 3.50 million of net proceeds from the listing remained unutilized, intended for acquiring additional licenses and qualifications, expected to be fully utilized by 2025[39][40] - As of August 31, 2024, the Group had pledged approximately HKD 5.73 million in leasehold land and buildings and motor vehicles, and approximately HKD 8.00 million in bank deposits, to secure bank borrowings[48] Key Risks and Risk Management The Group faces strategic, operational, financial, and compliance risks, managed through a "three lines of defense" governance structure involving operational management, finance and compliance teams, and external independent internal audit, with annual effectiveness assessments Major Risk Categories | Risk Area | Key Risks | | :--- | :--- | | Strategic Risk | Changes in competitor landscape; market saturation risk | | Operational Risk | Poor subcontractor performance; insufficient experienced management personnel | | Financial Risk | Liquidity risk, credit risk, interest rate risk, inflation risk | | Compliance Risk | Occupational safety and health, employment laws, contract terms, and GEM Listing Rules related risks | - The Group adopts a "three lines of defense" risk monitoring mechanism: the first line is operational management, the second is the finance and compliance team, and the third is an externally appointed independent internal audit (Zhihui Enterprise Management)[56] - The Group currently has no internal audit function, and the Directors believe appointing external independent professionals for this function is more cost-effective, with the need for this arrangement reviewed at least annually[57] Biographical Details of Directors and Senior Management This section provides biographical information for the Group's executive directors, independent non-executive directors, and senior management, outlining their roles and experience - Executive Directors: - Dr. Ng Tai Wing (Chairman and Chief Executive Officer) - Mr. Lo Wing Chung - Ms. Wong Tsz Man[59][61][67] - Independent Non-Executive Directors: - Mr. Hui Chun Ho - Mr. Sung Wai Tak - Dr. Chow Kin Sun - Dr. Luk Che Chung, JP[69][72][74][81] - Senior Management: - Mr. Chow Fu Cheung (Senior Consultant) - Mr. Lai Chi Hung (General Manager, Security Department) - Mr. Wong Chi Ho (Operations Manager)[86][91][93] Directors' Report This report details the company's investment holding business and its subsidiaries' ELV solutions in Hong Kong, confirming no significant changes in business nature, no final dividend recommendation, and high customer concentration Business and Financial Overview The company's primary business is investment holding, with subsidiaries providing ELV solutions in Hong Kong; no significant changes in business nature, no final dividend recommended, and high customer concentration were noted - The Directors do not recommend paying a final dividend for the year ended August 31, 2024[99] - During the review year, sales to the Group's top five customers accounted for 65.27% of total annual sales, with sales to the largest customer accounting for 38.29%[110] - For the year ended August 31, 2024, the Group made charitable donations totaling HKD 0.88 million[100] Directors, Shareholdings and Other Disclosures This report details board members and their rotation, Dr. Ng Tai Wing's 55% shareholding, the unexercised share option scheme, compliance with non-competition undertakings, maintenance of public float, and the auditor change during the year - The company adopted a share option scheme in 2017, allowing for the grant of options up to 10% of the total issued shares at the time of listing; no share options were granted, exercised, cancelled, or lapsed during the year or up to the report date[127][129][133] Major Shareholders' Shareholding (As at August 31, 2024) | Shareholder Name / Name | Capacity / Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Dr. Ng Tai Wing | Interest in controlled corporation | 880,000,000 (L) | 55% | | Ms. Wong Tsz Man | Spouse's interest | 880,000,000 (L) | 55% | | ECI Asia Investment Limited | Beneficial owner | 880,000,000 (L) | 55% | | Mr. Yeung Shek | Beneficial owner | 320,000,000 (L) | 20% | - Shinewing (HK) CPA Limited resigned as the company's auditor effective July 25, 2024, and Ascent Partners CPA Limited was appointed as the new auditor on the same day[158] - Based on public information and to the best knowledge of the Directors, the company maintained at least 25% of its issued share capital held by the public during the review year and up to the report date, complying with GEM Listing Rules[157] Corporate Governance Report The company adopted GEM Listing Rules' Corporate Governance Code, with two deviations: the Chairman and CEO roles are combined, and two board meeting notices were less than 14 days, though the board believes this structure benefits operations and leadership Governance Structure and Compliance The company adopted GEM Listing Rules' Corporate Governance Code, with two deviations: the Chairman and CEO roles are combined, and two board meeting notices were less than 14 days, though the board believes this structure benefits operations and leadership - Deviations from the Corporate Governance Code during the reporting period: - Code Provision C.2.1: The roles of Chairman (Dr. Ng Tai Wing) and Chief Executive Officer are combined, which the Board believes benefits the Group's operations and management - Code Provision C.5.3: Two of the four regular board meetings had notice periods shorter than 14 days[160][161] - The Board currently comprises seven directors: three executive directors (Dr. Ng Tai Wing, Mr. Lo Wing Chung, Ms. Wong Tsz Man) and four independent non-executive directors (Mr. Hui Chun Ho, Mr. Sung Wai Tak, Dr. Chow Kin Sun, Dr. Luk Che Chung)[167] Board Committees The company established Audit, Remuneration, and Nomination Committees to oversee specific matters, each comprising independent non-executive directors (except Nomination, which includes the Chairman), and all convened meetings to fulfill their duties during the reporting period - Audit Committee: Composed of four independent non-executive directors, chaired by Mr. Hui Chun Ho; key responsibilities include reviewing financial statements, overseeing internal controls, and recommending external auditors[179] - Remuneration Committee: Composed of four independent non-executive directors, chaired by Mr. Sung Wai Tak; responsible for determining remuneration policies and structures for directors and senior management[182] - Nomination Committee: Composed of one executive director (Dr. Ng Tai Wing, Chairman) and four independent non-executive directors; responsible for reviewing the board's structure, size, composition, and diversity, and providing recommendations on director appointments[184] Risk Management, Internal Control and Shareholder Rights The Board oversees risk management and internal control systems using a "three lines of defense" structure, engaging external independent professionals for internal audit, and has a dividend policy considering various factors, while shareholders holding at least 10% equity can request an EGM - The Group adopts a "three lines of defense" corporate governance structure and appointed Ascent Partners Professional Services Limited to conduct independent internal audits to assess the effectiveness of risk management and internal control systems[204] - The company has adopted a dividend policy, with dividend decisions considering various factors including the Group's financial performance, business strategy, capital needs, and shareholder returns[210][212] - According to the company's articles of association, shareholders holding not less than one-tenth of the company's paid-up capital have the right to request the Board to convene an extraordinary general meeting[221] Environmental, Social and Governance Report The Group's ESG report highlights its commitment to environmental protection through ISO 14001 certified management, reduced GHG emissions, and waste/water management, alongside social responsibility via ISO 45001 certified OHSMS, fair supply chain practices, and community investment Environmental Performance The Group is committed to environmental protection, implementing an ISO 14001:2015 compliant environmental management system, reducing total greenhouse gas emissions by approximately 3% to 212.38 tonnes of CO2e, and decreasing total energy consumption by 3.0% through various initiatives Greenhouse Gas Emissions (For the Year Ended August 31) | Greenhouse Gas Emissions | Unit | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Direct GHG Emissions (Scope 1) | tonnes of CO2e | 169.38 | 179.79 | | Indirect GHG Emissions (Scope 2) | tonnes of CO2e | 43.00 | 38.59 | | Total GHG Emissions | tonnes of CO2e | 212.38 | 218.38 | | Intensity (tonnes of CO2e / per HKD million revenue) | - | 1.06 | 1.25 | Energy Consumption (For the Year Ended August 31) | Energy Type | Unit | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Diesel | kWh | 344,488.28 | 291,716.47 | | Gasoline | kWh | 293,219.44 | 381,967.16 | | Electricity | kWh | 110,248.00 | 98,956.00 | | Total Energy Consumption | kWh | 747,955.72 | 772,639.63 | - To reduce air pollutant emissions, the Group's fleet includes 5 electric vehicles and 5 hybrid vehicles, and electric vehicle charging stations have been established[273] Social Performance The Group prioritizes employees, adhering to labor laws and ISO 45001 OHSMS, with 383 employees and a reduced turnover rate of 65.32%; it also emphasizes local suppliers (91.79%), ISO 9001 quality management, anti-corruption, and HKD 0.88 million in community investment - As of August 31, 2024, the Group had a total of 383 employees, with the overall turnover rate decreasing from 90.35% in the previous year to 65.32%[36][322][326] - The Group implements an Occupational Health and Safety Management System (OHSMS) compliant with international standard ISO 45001:2018 to ensure employee safety; no lost workdays due to work-related injuries were reported during the year[336] - The Group has established supplier selection procedures and prioritizes local suppliers; during the reporting year, local suppliers accounted for 91.79% of the total[359][362] - The Group has established a Quality Management System (QMS) compliant with ISO 9001:2015 to ensure service quality; no significant product or service-related complaints were received during the reporting year[365][370] - During the reporting year, the Group's total community donations amounted to HKD 0.88 million, primarily for sponsoring community activities[381] Independent Auditor's Report Ascent Partners CPA Limited issued an unmodified opinion on the Group's consolidated financial statements for the year ended August 31, 2024, affirming their true and fair presentation of the Group's financial position and performance - Auditor Ascent Partners CPA Limited issued an unmodified opinion on the Group's consolidated financial statements for the year ended August 31, 2024, stating that the statements present a true and fair view of the Group's financial position and performance[426] - Key audit matters include: - Revenue Recognition: Particularly revenue from providing installation services, due to its significant amount and the substantial judgments and estimates involved in project progress and total contract costs - Recoverability of Trade Receivables and Contract Assets: Due to their significant carrying amount and the substantial judgments and estimates involved in expected credit loss provisions[430][433][436][440] Consolidated Financial Statements This section presents the Group's consolidated financial statements, including the statement of profit or loss, financial position, and cash flows, providing a comprehensive overview of its financial performance and health Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement details the Group's revenue, costs, expenses, and profit for the fiscal year ended August 31, 2024, reporting total revenue of HKD 200.27 million, profit for the year of HKD 8.95 million, and basic earnings per share of HKD 0.56 cents Summary of Consolidated Statement of Profit or Loss (For the Year Ended August 31) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 200,265 | 174,012 | | Gross Profit | 49,811 | 40,595 | | Profit Before Tax | 9,603 | 6,174 | | Profit for the Year | 8,948 | 5,624 | | Basic Earnings Per Share (HK cents) | 0.56 | 0.35 | Consolidated Statement of Financial Position This statement presents the Group's assets, liabilities, and equity as of August 31, 2024, showing an increase in total assets to approximately HKD 105.48 million and total equity to approximately HKD 84.69 million, indicating growth in asset base and net assets Summary of Consolidated Statement of Financial Position (As at August 31) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 14,737 | 13,882 | | Current Assets | 90,744 | 84,425 | | Total Assets | 105,481 | 98,307 | | Current Liabilities | 16,855 | 20,107 | | Non-current Liabilities | 3,932 | 2,621 | | Total Liabilities | 20,787 | 22,728 | | Net Assets / Total Equity | 84,694 | 75,579 | Consolidated Statement of Cash Flows This statement reflects the Group's cash movements during the reporting period, showing a significant improvement in net cash inflow from operating activities to HKD 18.68 million, with cash and cash equivalents increasing to HKD 31.93 million at year-end Summary of Consolidated Statement of Cash Flows (For the Year Ended August 31) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 18,675 | (7,108) | | Net Cash Used in Investing Activities | (5,645) | (6,783) | | Net Cash Used in Financing Activities | (2,807) | (1,911) | | Net Increase (Decrease) in Cash and Cash Equivalents | 10,223 | (15,802) | | Cash and Cash Equivalents at Year End | 31,932 | 21,709 | Notes to the Consolidated Financial Statements This section provides detailed notes to the consolidated financial statements, offering further breakdown and explanations of key financial figures, policies, and significant accounting judgments Note 7: Revenue This note details the Group's revenue sources, with installation and maintenance services being primary contributors at HKD 85.47 million and HKD 87.22 million respectively, alongside significant growth in security guarding services and new EV charging revenue Revenue Classification (For the Year Ended August 31) | Service Type | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Installation Services | 85,469 | 76,800 | | Maintenance Services | 87,220 | 82,951 | | Security Guarding Services | 27,335 | 14,261 | | Electric Vehicle Charging Revenue | 241 | – | | Total | 200,265 | 174,012 | Note 8: Segment Information The Group operates in three segments: installation and maintenance, security guarding, and EV charging, with installation and maintenance being the largest contributor to revenue and profit, while the new EV charging segment is in its initial investment phase Segment Revenue and Profit (For the Year Ended August 31, 2024) | Segment | External Revenue (HKD thousands) | Segment Profit (Loss) (HKD thousands) | | :--- | :--- | :--- | | Installation and Maintenance Services | 172,689 | 12,463 | | Security Guarding Services | 27,335 | 931 | | Electric Vehicle Charging Business | 241 | (157) | | Total | 200,265 | 13,237 | Note 21: Trade Receivables As of August 31, 2024, the Group's net trade receivables decreased to HKD 29.46 million, with a notable portion (HKD 7.67 million) over 90 days past due, and an impairment provision of HKD 1.43 million recognized based on expected credit loss Ageing Analysis of Trade Receivables (As at August 31) | Ageing | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Within 30 days | 12,943 | 14,764 | | 31 to 60 days | 6,152 | 8,481 | | 61 to 90 days | 2,693 | 4,858 | | Over 90 days | 7,674 | 4,671 | | Total | 29,462 | 32,774 | - The Group has made an impairment provision of HKD 1.43 million for trade receivables, including a 100% provision of HKD 0.92 million for those internally credit-rated as "default"[728] Financial Summary This section provides a five-year financial overview, presenting key performance indicators, assets, and liabilities, illustrating the Group's financial trends and growth over the period Five-Year Financial Summary (For the Year Ended August 31) | Item (HKD thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | Results | | | | | | | Revenue | 200,265 | 174,012 | 130,433 | 138,207 | 114,442 | | Profit Before Tax | 9,603 | 6,174 | 6,571 | 9,046 | 3,587 | | Profit for the Year | 8,948 | 5,624 | 6,344 | 8,716 | 3,655 | | Assets and Liabilities | | | | | | | Total Assets | 105,481 | 98,307 | 86,501 | 82,718 | 71,402 | | Total Liabilities | 20,787 | 22,728 | 15,782 | 18,221 | 15,621 | | Total Equity | 84,694 | 75,579 | 70,719 | 64,497 | 55,781 |