Financial Performance - Revenue for the year ended December 31, 2024, was approximately HKD 230.6 million, an increase of about HKD 50.2 million or approximately 27.8% compared to the previous year[3] - Gross profit for the year was approximately HKD 176.1 million, representing an increase of about HKD 62.0 million or approximately 54.3% year-over-year[3] - Net profit for the year was approximately HKD 66.2 million, a decrease of about HKD 7.1 million or approximately 9.7% compared to the previous year[3] - The company reported a gross margin of approximately 76.4% for the year, up from 63.3% in the previous year[4] - Operating profit before tax was approximately HKD 82.1 million, down from HKD 90.9 million in the previous year[4] - Total comprehensive income for the year was approximately HKD 20.3 million, compared to HKD 37.2 million in the previous year[5] - Basic and diluted earnings per share for the year were HKD 0.07, unchanged from the previous year[4] Revenue Breakdown - The group reported revenue from wastewater treatment services of HKD 113,538 thousand for 2024, compared to HKD 64,554 thousand in 2023, representing an increase of 76%[15] - The revenue from special service arrangements was HKD 117,016 thousand in 2024, up from HKD 115,799 thousand in 2023, indicating a growth of 1%[15] - Total revenue for the group reached HKD 230,554 thousand in 2024, compared to HKD 180,353 thousand in 2023, reflecting an overall increase of 28%[15] Assets and Liabilities - Total assets as of December 31, 2024, amounted to HKD 2,149,594,000, compared to HKD 2,241,275,000 in 2023, reflecting a decrease of approximately 4.1%[6] - Total liabilities increased from HKD 770,076,000 in 2023 to HKD 882,024,000 in 2024, representing an increase of about 14.5%[7] - The company's total equity increased from HKD 1,359,251,000 in 2023 to HKD 1,379,518,000 in 2024, marking a growth of about 1.5%[6] - The company's total liabilities to equity ratio increased from 0.57 in 2023 to 0.64 in 2024, indicating a rise in financial leverage[7] Cash Flow and Financial Health - Cash and cash equivalents were reported at HKD 133,557,000 in 2024, compared to HKD 89,971,000 in 2023, representing an increase of about 48.5%[6] - The company expects sufficient operating cash flow to meet its financial obligations over the next 12 months, ensuring continued operations[9] - The company recorded a total of HKD 28,154,000 in trade payables as of December 31, 2024, compared to HKD 39,571,000 in the previous year[30] Operational Strategy - The company plans to expand its wastewater treatment services and special service arrangements in the upcoming fiscal year[3] - The company is focusing on enhancing its operational efficiency and exploring new market opportunities to drive future growth[3] - The company plans to continue focusing on the expansion and upgrading of wastewater treatment facilities in cooperation with local authorities[35] - The company is exploring potential acquisition opportunities for wastewater treatment assets in Yinchuan, Ningxia, and other regions in China[36] Accounting and Compliance - The group has begun evaluating the impact of new accounting standards and interpretations on its operations, which may lead to changes in accounting policies and disclosures[12] - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from 2024, with no significant impact on its performance and financial position[10] - The company has established an audit committee to oversee the financial reporting process, risk management, and internal controls[62] - The company has confirmed that the financial figures for the year ending December 31, 2024, have been audited and are consistent with the consolidated financial statements[63] Market Conditions - The company anticipates a slowdown in economic growth in China due to weak consumer confidence and a sluggish labor market[34] Shareholder Information - The company did not declare or pay any dividends for both fiscal years 2024 and 2023[26] - The company did not recommend the payment of a final dividend for the years ended December 31, 2024, and December 31, 2023[60] - The annual performance announcement has been published on the Hong Kong Stock Exchange website and the company's website[67] - The company expresses gratitude to shareholders for their support and to employees for their hard work and contributions[68]
达力环保(01790) - 2024 - 年度业绩