Financial Performance - The company reported a significant increase in net profit attributable to shareholders, rising by approximately HKD 21.1 million or about 297.2%, from HKD 7.1 million in the previous year to approximately HKD 28.2 million for the year ended July 31, 2025[22]. - Earnings per share for the year ended July 31, 2025, were HKD 2.82, compared to HKD 0.71 for the previous year[22]. - Total revenue for the year ended July 31, 2025, reached approximately HKD 330.7 million, an increase of about HKD 51.4 million or 18.4% compared to approximately HKD 279.3 million for the previous year[29]. - The company recorded a 297.2% increase in net profit attributable to shareholders, rising from approximately HKD 7.1 million to about HKD 28.2 million for the year ended July 31, 2025[28]. - Revenue from the sale of heavy equipment and parts increased by approximately HKD 50.2 million or 31.7%, from about HKD 158.4 million to approximately HKD 208.6 million[31]. - Revenue from heavy equipment leasing and operator services rose by approximately HKD 3.2 million or 3.0%, from about HKD 105.3 million to approximately HKD 108.5 million[32]. - Revenue from maintenance, logistics, and other ancillary services decreased by approximately HKD 2.0 million or 12.8%, from about HKD 15.6 million to approximately HKD 13.6 million[33]. - The cost of revenue for the year ended July 31, 2025, was approximately HKD 262.9 million, an increase of about HKD 40.9 million or 18.4% compared to approximately HKD 222.0 million for the previous year[34]. - Gross profit increased by approximately HKD 10.5 million or 18.3%, from about HKD 57.3 million to approximately HKD 67.8 million, with a gross margin of approximately 20.5%[35]. - Profit and total comprehensive income increased from approximately HKD 7.1 million for the year ended July 31, 2024, to approximately HKD 28.2 million for the year ended July 31, 2025, representing an increase of approximately 297.2%[41]. Dividends - The board proposed a final dividend of HKD 0.02 per share, with total cash dividends for the year reaching HKD 0.035 per share, up from HKD 0.015 per share in the previous year[22]. - The proposed final cash dividend is HKD 0.02 per ordinary share, which, if approved, will result in a total cash dividend of HKD 0.035 per share for the year ended July 31, 2025, compared to HKD 0.015 for the previous year[42]. Operational Developments - The company continues to provide comprehensive "one-stop service" for earthmoving equipment users and has established strong partnerships with suppliers like Hitachi and Bell Equipment[23]. - The company has fully adopted a safety smart site system across its rental fleet, enhancing project management capabilities and safety standards through digital platforms and AI[23]. - The company plans to launch the latest ZAXIS-7 series hydraulic excavators from Hitachi in 2024, featuring collision safety systems and Aerial Angle® smart cameras to reduce accident risks[23]. - The integrated ConSite® system will monitor oil properties and overheating anomalies to enhance operational reliability[23]. - The company offers Bell brand articulated dump trucks equipped with the Fleetm@tic® satellite-based fleet management system for real-time tracking and performance optimization[24]. - The company remains cautiously optimistic about the outlook for heavy equipment sales and rentals, driven by various development projects initiated by the Hong Kong government[28]. - The company plans to diversify its supplier base and actively procure innovative safety systems and smart products to enhance sustainability and competitiveness[29]. - The Hong Kong government is expected to invest an average of over HKD 120 billion annually in public works projects over the next few years, which is anticipated to sustain strong demand for heavy equipment[29]. Risk Management and Governance - The company’s financial performance, business operations, and outlook may be affected by various risks and uncertainties[73]. - The board believes that the risk management and internal control systems are adequate and effective, with no significant issues identified that could impact financial, operational, or compliance monitoring[177]. - The company has engaged an external consultant to assist in identifying and assessing risks as part of the annual review of the risk management and internal control systems[177]. - The board is responsible for overseeing the management of the group's business affairs and overall performance, including setting the group's values and standards[131]. - The company has maintained good corporate governance practices in accordance with the principles and code provisions set out in the listing rules, with a noted deviation from code provision C.2.1[123]. Employee and Director Information - The total employee cost for the year ending July 31, 2025, is approximately HKD 58.0 million, an increase from HKD 55.0 million in the previous year[116]. - The company employs 116 full-time employees as of July 31, 2025, up from 107 employees a year earlier[116]. - The board consists of a mix of executive and independent non-executive members, ensuring governance and oversight[101]. - The board consists of seven members, with non-executive directors (including independent non-executive directors) making up over 50% of the board, and three out of seven directors being female, reflecting gender diversity[134]. - The company has appointed executive directors for a three-year term starting from July 27, 2023, with the possibility of renewal[103]. - Independent non-executive directors have confirmed their independence after approximately eight years of service, in accordance with listing rules[104]. Shareholder Communication and Meetings - The company has adopted a shareholder communication policy to ensure effective communication with shareholders, with annual reviews of its implementation and effectiveness[191]. - The company will hold its 2025 Annual General Meeting on November 26, 2025[70]. - The company will hold a special general meeting if a qualified shareholder holding at least 10% of the voting rights requests it[187]. - The board is committed to maintaining ongoing dialogue with shareholders, with key executives present at the annual general meeting to address shareholder inquiries[191]. Audit and Compliance - The board's audit committee reviewed the consolidated financial statements for the year ending July 31, 2025, confirming compliance with applicable accounting standards and sufficient disclosures[120]. - Key audit matters identified include the estimation of net realizable value of inventory and impairment assessment of trade and lease receivables[200]. - The external auditor's fee for the audit services related to the financial statements for the year ending July 31, 2025, is 0.8 million HKD[171]. - The company has not changed its independent auditor in the past three years, with a resolution to seek shareholder approval for the reappointment of the auditor at the upcoming annual general meeting[125].
德利机械(02102) - 2025 - 年度财报