Financial Performance - ECI Technology Holdings Limited reported revenue of approximately HKD 138,207,000 for the year ended August 31, 2021, representing an increase of about 20.77% compared to HKD 114,442,000 in the previous year[10]. - The group's gross profit for the same period was approximately HKD 30,947,000, up from HKD 27,323,000 in the previous year[10]. - The net profit for the year was approximately HKD 8,716,000, compared to HKD 3,655,000 in the previous year, indicating significant growth[11]. - Revenue increased by approximately 20.77% from HKD 114,442,000 for the year ended August 31, 2020, to HKD 138,207,000 for the year ended August 31, 2021, primarily due to increased contract fees from ELV business[23]. - Gross profit rose by approximately 13.26% from HKD 27,323,000 for the year ended August 31, 2020, to HKD 30,947,000 for the year ended August 31, 2021, attributed to the increase in revenue[24]. - Net profit for the year ended August 31, 2021, was approximately HKD 8,716,000, compared to HKD 3,655,000 for the previous year, reflecting the increase in revenue[26]. Dividend Policy - The company did not recommend the payment of a final dividend for the year ended August 31, 2021, consistent with the previous year[12]. - The group did not declare a final dividend for the year ended August 31, 2021, compared to none in 2020[32]. - The company has approximately HKD 9,588,000 available for distribution to shareholders as of August 31, 2021[99]. - The company’s dividend policy, adopted on December 31, 2018, outlines the factors considered for declaring dividends[184]. - The company will regularly review and monitor its dividend policy, with no guarantee of specific dividend amounts being declared in any given period[186]. Business Development and Strategy - The company benefited from government policies related to digital television, leading to increased orders for television broadcasting updates and installations[14]. - ECI Technology is expanding its electric vehicle solutions business in response to government policies on environmentally friendly vehicles, including a project for the installation of electric vehicle charging systems[14]. - The company has secured two projects based on LoRa standards for low-voltage system supply and installation, expanding its ELV business[15]. - Future development strategies include providing integrated security services and solutions to both public and private sectors to enhance competitive advantages[15]. - The management team will continue to assess potential business opportunities to enhance shareholder value in the coming years[15]. - The company is focusing on bidding for ELV maintenance service contracts to strengthen customer relationships and increase market share[20]. - The company is investing in the development of internal capabilities and collaborating with business partners to provide integrated solutions and security services[22]. - The company has successfully won the security service contract for the 2021 UCI Track Cycling Nation Cup, enhancing its reputation and experience[19]. Operational Performance - The overall business environment remained challenging due to the COVID-19 pandemic, but the company’s security installation and maintenance services have resumed[15]. - The sales cost increased by approximately 23.12% from HKD 87,119,000 for the year ended August 31, 2020, to HKD 107,260,000 for the year ended August 31, 2021[24]. - As of August 31, 2021, the group had cash and bank balances of approximately HKD 29,059,000, an increase of about HKD 5,557,000 compared to HKD 23,502,000 as of August 31, 2020[31]. - The group had interest-bearing bank borrowings of approximately HKD 4,387,000 as of August 31, 2021, a decrease of about HKD 988,000 from HKD 5,375,000 in the previous year[31]. - The group employed a total of 378 employees as of August 31, 2021, an increase from 343 employees in 2020[34]. Corporate Governance - The company has not appointed any new directors in the past three years, indicating stability in its leadership structure[55][58][61][63][67]. - The independent non-executive directors provide critical oversight and independent opinions to the board, ensuring compliance and governance[62][66][68]. - The company has a diverse board with members holding various qualifications, including degrees in engineering, business management, and law, contributing to a well-rounded decision-making process[60][62][66]. - The board of directors consists of 1 executive director, 1 non-executive director, and 4 independent non-executive directors, ensuring a diverse governance structure[150]. - The company has maintained a consistent approach to corporate governance, with independent directors actively participating in committees[62][66][68]. Risk Management - The group identified strategic risks including changes in competitive landscape and market saturation risks[49]. - The company has established an enterprise risk management framework to identify, assess, and prioritize risks, following the COSO ERM framework[182]. - The board is responsible for ensuring effective internal controls, while management is tasked with designing and implementing these systems[182]. Social Responsibility and ESG - The group reported a charitable donation of HKD 495,780 for the year ended August 31, 2021, compared to HKD 475,774 in 2020, reflecting an increase of approximately 4.2%[92]. - The group emphasizes the importance of integrating ESG principles into its risk management system to pursue sustainable business practices[194]. - The group is committed to providing a healthy and safe working environment for all employees and stakeholders[195]. - The company encourages stakeholder participation in environmental and social activities to foster community benefits[132]. Audit and Compliance - The audit committee held four meetings during the year to discuss financial reporting and compliance procedures, confirming that the annual report meets applicable standards and regulations[160]. - The external auditor, Shinewing (HK) CPA Limited, received a total remuneration of HKD 1,008,000 for audit and non-audit services for the year ended August 31, 2021, with HKD 740,000 for audit services and HKD 268,000 for non-audit services[179]. - The company has adhered to all relevant laws and regulations without any significant violations during the review period[135].
ECI TECH(08013) - 2021 - 年度财报