Revenue Performance - The company's revenue for the fiscal year ending October 31, 2024, decreased by 7% to HKD 94,644,000 from HKD 101,924,000 in the previous year[8]. - The water supply business revenue fell by 15% to HKD 39,698,000, down from HKD 46,628,000, primarily due to currency depreciation and a decrease in average water prices[9]. - The environmental products business maintained stable revenue at HKD 54,946,000, compared to HKD 55,296,000 in the previous year, highlighting the relevance of energy-saving products[13]. - Environmental products accounted for 58% of total revenue, while the water supply business accounted for 42%, indicating a diversified business model[8]. - The group reported a total asset value of HKD 71,455,000, which accounts for 42.4% of the total assets as of October 31, 2024[173]. - Total revenue for the year ended October 31, 2024, was HKD 94,644,000, a decrease of 7.5% compared to HKD 101,924,000 in 2023[184]. Profitability and Financial Health - The gross profit decreased by 15% to HKD 31,098,000, with a gross profit margin dropping from 36% to 33% due to the decline in average water selling prices and RMB depreciation[35]. - Operating profit significantly declined to HKD 130,000 from HKD 9,463,000 in 2023, indicating a drop of 98.6%[184]. - The company reported a loss attributable to owners of HKD 1,806,000 for the year, compared to a profit of HKD 5,593,000 in 2023[184]. - The total comprehensive income for the year ended October 31, 2024, was HKD 681,000, a recovery from a loss of HKD (1,806,000) in the previous year[193]. - The company recognized an expected credit loss provision of HKD 2,183,000, significantly higher than HKD 377,000 in the previous year[184]. Liquidity and Cash Flow - The current ratio as of October 31, 2024, was approximately 1.89, compared to 1.88 the previous year, indicating stable liquidity[37]. - Cash flow from operating activities showed a net outflow of HKD 9,590,000, contrasting with a net inflow of HKD 381,000 in the previous year[189]. - The cash and cash equivalents dropped to HKD 27,052,000 from HKD 41,485,000, a decrease of 34.9%[186]. - The net cash used in financing activities was HKD (3,574,000) compared to HKD (3,618,000) in 2023, showing a slight improvement[191]. Governance and Leadership - The company has a strong leadership team with over 35 years of experience in the engineering industry, led by Chairman Mr. Wu Cheng-Wei[19]. - The CEO position has been vacant, with responsibilities currently handled by the Executive Director[20]. - The Executive Director, Mr. Leung Wai-Lun, has over 30 years of experience in the engineering sector and joined the company in September 2015[21]. - The company has independent non-executive directors with extensive experience in finance and engineering, enhancing governance and oversight[25][24]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse governance structure[52]. Strategic Focus and Future Outlook - The company plans to participate in more trade exhibitions to strengthen market position and collaborate with various suppliers to enhance product variety[18]. - Future growth potential is cautiously optimistic, particularly in the environmental products sector, as global environmental awareness increases[15]. - The company is focused on advancing technology development and procurement of products that align with China's energy-saving and emission reduction policies[18]. - The group plans to continue sourcing more related products to comply with China's energy-saving and emission reduction policies and enhance market share through trade exhibitions[33]. - The company aims to leverage its leadership's extensive industry experience to drive future growth and market expansion[19][21]. Environmental Commitment - The company emphasizes sustainable development through waste management, pollution reduction, and effective resource utilization[16]. - The company aims to minimize its environmental impact by adhering to all relevant environmental regulations and implementing resource optimization policies[150]. - The company has implemented measures to monitor and reduce wastewater and sludge generated from its water treatment operations, ensuring compliance with Chinese environmental standards[152]. Employee and Stakeholder Relations - The company maintains a strong relationship with stakeholders, focusing on quality products and timely services to customers[129]. - The company emphasizes the importance of employee safety as a key factor for sustainable business growth[129]. - As of October 31, 2024, the company has no management or administrative contracts related to its overall or any major business[136]. Shareholder and Dividend Policy - The company adopted a dividend policy in January 2019, aiming to distribute surplus funds after meeting operational and future development needs[72]. - The company does not recommend the distribution of a final dividend for the year ending October 31, 2024[110]. - The company has a distributable reserve of approximately HKD 6,521,000 as of October 31, 2024[119]. Risk Management and Compliance - The company has established a clear organizational structure for risk management and internal controls, with responsibilities defined at the board, audit committee, and management levels[91]. - The audit committee is responsible for reviewing the adequacy and effectiveness of the company's risk management and internal control systems[98]. - The company has adopted a policy for timely and accurate disclosure of significant information, ensuring potential insider information is quickly identified and assessed[95]. - The company has implemented a shareholder communication policy to ensure equal and timely access to information for shareholders and potential investors[96].
环康集团(08169) - 2024 - 年度财报