Financial Performance - In FY2024, the Group achieved revenue of HK$121.6 million, a 7.4% increase year-on-year, with gross profit rising by 52.5% to HK$62.0 million, resulting in a gross profit margin of 51.0%[31][35]. - The Group's net loss for FY2024 was HK$9.3 million, compared to HK$8.1 million in FY2023, primarily due to increased tax liabilities[31][35]. - Total revenue increased by HK$8.3 million or 7.4% to HK$121.6 million for FY2024 compared to HK$113.3 million for FY2023, driven by the full operation of the Bangka Project and the data centre in Jambi[42][45]. - Gross profit increased by HK$21.4 million or 52.5% from HK$40.7 million for FY2023 to HK$62.0 million for FY2024, with gross profit margin rising from 35.9% to 51.0%[47][52]. - Profit before tax increased by HK$0.5 million or 65.0% to HK$1.2 million for FY2024, reflecting improved financial performance[59][65]. - Loss attributable to owners of the Company increased by HK$0.4 million or 5.6% to HK$8.7 million for FY2024, influenced by the factors mentioned above[61][67]. Operational Developments - In FY2024, the wastewater treatment facility operated by Rugao Hengfa will expand its capacity from 40,000 tonnes to 50,000 tonnes per day, ensuring compliance with higher environmental standards[14]. - The Bangka biomass power plant in Indonesia commenced operations in late July 2024, securing a 25-year fixed-price agreement with PLN, providing a stable revenue stream[15]. - The company is progressing with the strategic divestment of an 80% interest in the wood pellet production business of RPSL, with completion expected in the first half of 2025[15]. - RPSL's data center business has emerged as a growing revenue contributor, providing steady cash flow to the Group in FY2024[15]. - The planned disposal of an 80% interest in the wood pellet production business remains pending due to government approval delays, with completion aimed for the first half of 2025[26][39]. Financial Management - The company aims to reduce debt and improve operational efficiency while exploring new growth opportunities in wastewater treatment and renewable energy[19]. - As of December 31, 2024, total utilized bank borrowings were HK$75.4 million, with a gearing ratio increasing from 66.0% in FY2023 to 80.0% in FY2024[33][36]. - The Group is focused on reducing debt and interest expenses while managing financial leverage to ensure long-term sustainability[40][41]. - Administrative expenses rose by 28.8% from HK$26.5 million in FY2023 to HK$34.1 million in FY2024, driven by higher staff costs and legal fees[32][35]. - Finance costs decreased slightly by HK$0.6 million or 4.7% to HK$12.1 million for FY2024, mainly due to lower interest on loans from related parties[58][64]. Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG report highlights its commitment to sustainable development and adherence to reporting principles such as materiality and consistency[110]. - The Group has established risk management mechanisms to identify, evaluate, manage, and monitor material ESG risks[136]. - The Group's sustainability strategies focus on four pillars: Corporate Governance, Creating Green Fortune, Caring Our People, and Contributing to the Community[140]. - The Group actively engages with stakeholders, including contractors, shareholders, investors, and local communities, to gather feedback on operations and sustainable development performance[145]. - The Group aims to strengthen climate resilience in operations and solutions towards a greener future[142]. Wastewater Treatment and Biomass Power Generation - The wastewater treatment facility in Jiangsu Province has a daily treatment capacity of 40,000 tonnes, with an expected total wastewater treated of 14,410,153 tonnes in 2024, and a chemical oxygen demand (COD) removal of 4,465 tonnes[119]. - The biomass power plant in Bangka, Indonesia, is projected to generate 30,995,484 kWh of electricity in 2024, with 27,670,202 kWh expected to be exported to the national electricity company (PLN) in the same year[119]. - The wastewater treatment processes include filtration, sedimentation, adjustment, acidification, anaerobic treatment, and sterilization, ensuring compliance with local standards[123]. - The company has obtained necessary Pollutant Emission Permits and conducts daily water quality monitoring to ensure treated wastewater meets required standards[124]. - The company promotes the reuse of treated wastewater for equipment cleaning purposes to conserve water resources[167]. Employee and Organizational Development - As of December 31, 2024, the Group had 302 employees, an increase from 176 employees as of December 31, 2023[93]. - Employee costs for FY2024 amounted to approximately HK$16.3 million, compared to HK$15.5 million for FY2023, reflecting a year-on-year increase of about 5.2%[93]. - The Group encourages employee self-development and provides on-the-job training, linking bonuses to both group and individual performance[93]. - The Group strictly adheres to employment-related regulations and reported no significant violations in areas such as compensation, recruitment, and equal opportunities during the reporting period[195]. - The employee distribution by age shows that 111 employees are 30 or below, 66 are between 31-40, 22 are between 41-50, and 22 are 51 or above[199].
强泰环保(01395) - 2024 - 年度财报