Financial Performance - The company recorded a net profit attributable to shareholders of approximately HKD 52.6 million for the year ended July 31, 2021, representing an increase of about 2.5% compared to HKD 51.3 million for the previous year[22]. - Earnings per share for the year ended July 31, 2021, increased by 2.5% to HKD 0.0526, up from HKD 0.0513 in the previous year[22]. - Total revenue for the year ended July 31, 2021, was approximately HKD 485.8 million, a decrease of about HKD 143.0 million or 22.7% from approximately HKD 628.8 million for the previous year[34]. - Revenue from heavy equipment and parts sales decreased by approximately HKD 195.2 million or 43.1%, from approximately HKD 452.4 million to approximately HKD 257.2 million[35]. - Heavy equipment rental income increased by approximately HKD 46.7 million or 27.4%, from approximately HKD 170.4 million to approximately HKD 217.1 million[36]. - Revenue from maintenance and support services rose by approximately HKD 5.5 million or 91.7%, from approximately HKD 6.0 million to approximately HKD 11.5 million[37]. - The company's profit attributable to owners increased by approximately HKD 1.3 million or 2.5% to approximately HKD 52.6 million, with a net profit margin rising to 10.8% from 8.2%[49]. - Gross profit decreased from approximately HKD 107.1 million for the year ended July 31, 2020, to approximately HKD 90.6 million for the year ended July 31, 2021, a decline of about 15.4%[41]. - Other income and net gains increased from approximately HKD 3.1 million to approximately HKD 9.3 million, representing a growth of about 200.0%, mainly due to a subsidy of approximately HKD 7.1 million from the Hong Kong government's "Employment Support Scheme"[42]. Dividends - The board proposed a final dividend of HKD 0.02 per share, with a total cash dividend of HKD 0.035 per share for the year, compared to HKD 0.025 per share in the previous year[22]. - The proposed final dividend is HKD 0.02 per share, with a total cash dividend of HKD 0.035 per share for the year ended July 31, 2021, compared to HKD 0.025 per share for the previous year[52]. Market Outlook - The company remains optimistic about the heavy equipment sales and rental market in Hong Kong, driven by ongoing large-scale infrastructure projects[26]. - The government is expected to invest over HKD 100 billion annually in public works projects, which is anticipated to drive demand for heavy equipment in the coming years[31]. - The company has outlined a positive outlook for the upcoming fiscal year, projecting a revenue growth of 10% to 12% based on current market trends and customer demand[89]. Operational Strategies - The company continues to provide "one-stop service" for earthmoving equipment users and has adopted flexible fleet management strategies for its rental business[23]. - The company is adopting digitalization and automation technologies, including the ConSite® system for real-time location detection and overheating alerts for Hitachi excavators[24]. - The company has introduced hybrid hydraulic excavators and has rented out its first electric excavator in Hong Kong, showcasing its commitment to energy efficiency[26]. - The company has implemented new strategies to improve operational efficiency, aiming for a 5% reduction in costs through process optimization[89]. Supplier and Customer Relationships - The company has established strong relationships with suppliers such as Hitachi Construction Machinery, Bell Equipment Company, and Ammann BauAusrüstung, which will continue to provide competitive advantages in the Hong Kong market[23]. - The top five customers accounted for 44.4% of total revenue for the year ended July 31, 2021, an increase from 43.7% in the previous year, with the largest customer contributing 15.7%[104]. - The top five suppliers represented 73.4% of total procurement for the year ended July 31, 2021, up from 71.6% in the previous year, with the largest supplier accounting for 54.9%[104]. Financial Position - Revenue cost for the year ended July 31, 2021, was approximately HKD 395.2 million, a decrease of about HKD 126.5 million or 24.2% compared to HKD 521.7 million for the year ended July 31, 2020[40]. - The current ratio improved to approximately 6.1 times as of July 31, 2021, compared to 3.3 times as of July 31, 2020, primarily due to a reduction in bank borrowings by approximately HKD 42.4 million[53]. - The debt-to-equity ratio was approximately 8.9% as of July 31, 2021, down from 19.1% as of July 31, 2020[53]. Corporate Governance - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors, responsible for managing and operating the group's business[66]. - The board is committed to implementing good corporate governance to enhance shareholder value[156]. - The company has established a nomination policy to determine the skills and experience required for new directors[168]. - The board's governance functions include the development and review of corporate governance policies and practices[196]. Employee and Management - The total employee cost for the year ended July 31, 2021, was approximately HKD 116.5 million, an increase from HKD 92.6 million in the previous year[141]. - The group employed 215 full-time employees as of July 31, 2021, compared to 211 employees a year earlier[141]. - The company emphasizes the importance of training for directors, providing formal and targeted onboarding as well as ongoing training to enhance their knowledge and skills[172]. Risk Management - The company is closely monitoring the impact of the COVID-19 pandemic on its industry while implementing strategies to achieve growth[31]. - The group is exposed to foreign currency risks due to transactions, assets, and liabilities primarily denominated in HKD, JPY, EUR, and USD, with no current foreign currency hedging policy in place[62]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory requirements, as well as corporate governance policies[196].
德利机械(02102) - 2021 - 年度财报