Financial Performance - For the six months ended April 30, 2024, revenue was HKD 51,389,000, an increase of approximately 14% compared to HKD 45,143,000 for the same period in 2023[5] - Profit attributable to the owners of the company for the same period was HKD 2,010,000, relatively unchanged from HKD 2,004,000 in the previous year[5] - Basic earnings per share remained stable at approximately HKD 0.31 for both periods[5] - Gross profit for the six months ended April 30, 2024, was HKD 19,007,000, compared to HKD 16,686,000 in the previous year[7] - Operating profit increased to HKD 4,637,000 from HKD 4,382,000 year-on-year[7] - Total comprehensive income attributable to owners for the period was HKD 3,990,000, down from HKD 13,363,000 in the previous year[8] - Revenue for the six months ended April 30, 2024, was HKD 51,389,000, representing a 14.9% increase from HKD 45,143,000 for the same period in 2023[21] - Profit from operating segments for the six months ended April 30, 2024, was HKD 17,524,000, up 15.1% from HKD 15,226,000 in the prior year[25] - Sales of environmental products reached HKD 29,520,000, a 17.5% increase compared to HKD 25,141,000 in the previous year[21] - Water supply revenue increased to HKD 21,869,000, up 9.3% from HKD 20,002,000 in the same period last year[21] - Total comprehensive income for the six months ended April 30, 2024, was HKD 3,990,000, compared to HKD 13,363,000 for the previous period[16] - The group reported a net profit before tax of HKD 3,890,000, compared to HKD 3,913,000 in the same period last year[25] Assets and Liabilities - Cash and cash equivalents decreased to HKD 36,476,000 from HKD 47,316,000 year-on-year[14] - Non-current assets decreased to HKD 74,334,000 from HKD 76,996,000[10] - Total equity attributable to owners increased to HKD 111,551,000 from HKD 107,561,000[12] - The group’s total assets as of April 30, 2024, were HKD 170,257,000, a slight decrease from HKD 172,541,000 as of October 31, 2023[25] - Total liabilities increased to HKD 58,706,000 from HKD 51,500,000 in the previous period[25] - The total inventory as of April 30, 2024, was HKD 13,393,000, down from HKD 16,898,000 as of October 31, 2023, indicating a decrease of approximately 20.5%[38] - Accounts receivable increased to HKD 37,961,000 as of April 30, 2024, from HKD 27,490,000 as of October 31, 2023, representing a growth of about 38.3%[39] - The company's property, plant, and equipment net book value as of April 30, 2024, was HKD 65,184,000, a decrease from HKD 66,634,000 at the beginning of the period[36] - The company's total liabilities included contract liabilities of HKD 5,478,000 as of April 30, 2024, slightly down from HKD 5,671,000 as of October 31, 2023[41] - The company reported a foreign exchange forward contract liability of HKD 112,000 as of April 30, 2024, compared to HKD 127,000 as of October 31, 2023[44] - The company has a loan from a related party amounting to HKD 1,200,000 as of April 30, 2024, unchanged from October 31, 2023[42] Expenses and Costs - Depreciation expenses for property, plant, and equipment were HKD 3,113,000, an increase from HKD 2,425,000 in the previous year[28] - Employee costs, including directors' remuneration, rose to HKD 8,850,000 from HKD 8,325,000 in the prior year[28] - Administrative expenses rose by 2% to HKD 13,132,000 compared to HKD 12,837,000 in the previous year[55] - The company reported total employee costs of approximately HKD 8,900,000, an increase from HKD 8,300,000 for the same period in 2023, reflecting a growth of about 7.23%[63] - Employee costs, including key management personnel remuneration, totaled HKD 2,696,000, an increase from HKD 2,537,000 in the previous year[47] Corporate Governance and Management - The company has established various committees, including a Remuneration Committee and a Nomination Committee, to oversee governance and management practices[78][79] - The Audit Committee was established on December 5, 2001, to review and supervise the financial reporting process and internal control systems of the group[82] - The Audit Committee has reviewed the unaudited results for the six months ending April 30, 2024, and confirmed compliance with applicable accounting standards and regulations[82] - The board of directors includes executive directors Mr. Ng Cheng Wai and Mr. Leung Wai Lun, along with independent non-executive directors Dr. Lui Sun Wing, Ms. Chan Siu Ping, Mr. Chow Kam Wing, and Ms. Wong Ching Yan[83] Market Outlook and Strategy - The company remains cautiously optimistic about the potential development of advanced environmental solutions in the Chinese industrial market, particularly in energy-saving hydraulic technology[50] - The company has maintained a conservative financial policy, continuously assessing clients' financial conditions to mitigate credit risk[60] - The company has no significant foreign exchange risk as its procurement is primarily in JPY, GBP, EUR, and USD, while sales are mainly in RMB and HKD[61] - The company has adhered to all corporate governance codes as per GEM listing rules, with one exception regarding attendance at the annual general meeting[75] Shareholder Information - As of April 30, 2024, the major shareholder, Jiang Lili, holds 344,621,200 shares, representing 53.06% of the issued shares[69] Other Information - The company did not declare any interim dividend for the six months ended April 30, 2024, consistent with the previous year[33] - There were no significant acquisitions or disposals of subsidiaries or associated companies during the six months ending April 30, 2024[65] - The company reported no significant contingent liabilities as of April 30, 2024, consistent with the previous year[64] - The company has not engaged in any purchases or sales of its listed securities during the six months ending April 30, 2024[73]
环康集团(08169) - 2024 - 中期财报