Financial Performance - The company recorded revenue of approximately HKD 248.5 million for the reporting period, a decrease of about 18.5% compared to HKD 305.0 million in the previous year[9]. - The profit after tax was approximately HKD 115.3 million, representing a decrease of about 8.9% from HKD 126.5 million in the previous year[13]. - The overall comprehensive income for the year was 158.3 million HKD, down from 195.8 million HKD in the previous year, representing a decrease of approximately 19.1%[39]. - Revenue decreased from approximately HKD 305.0 million in 2020 to approximately HKD 248.5 million in 2021, a decline of about HKD 56.5 million or 18.5%[42]. - The net profit after tax for the year was 115.3 million HKD, a decline from 126.5 million HKD in the previous year, reflecting a decrease of about HKD 11.2 million or 8.9%[56]. - Revenue from wastewater treatment operation services decreased from approximately HKD 129.2 million to approximately HKD 113.0 million, a decrease of about HKD 16.2 million or 12.5%[43]. - Revenue from construction services dropped significantly from approximately HKD 51.1 million to approximately HKD 1.5 million, a decrease of about HKD 49.6 million or 97.1%[43]. - The decrease in revenue was primarily due to reduced construction revenue and the cessation of operations at the first treatment plant on July 14, 2021[31]. Operational Adjustments - The closure of the first treatment plant on July 14, 2021, is not expected to impact the remaining wastewater treatment plants operated by the company[9]. - The company’s operational adjustments included transitioning wastewater inflow to a third-party treatment plant during a testing period[9]. - The company plans to continue monitoring the compensation agreement related to the first treatment plant's closure, which is still under negotiation[9]. - The company plans to focus on expanding or upgrading new water pricing and the first and fourth treatment plants, which will positively contribute to revenue[15]. - The company plans to focus on upgrading and expanding the second and fourth treatment plants in collaboration with local authorities[34]. Future Outlook - The company anticipates facing challenges in the upcoming year due to ongoing COVID-19 impacts and geopolitical uncertainties, particularly from the recent invasion of Ukraine by Russia[14]. - The company remains cautiously optimistic about its financial performance for the fiscal year ending December 31, 2022, despite the closure of the first treatment plant[15]. - The company’s long-term outlook remains positive due to its status as a long-term concessionaire despite external challenges[14]. Cash Flow and Liquidity - The company intends to declare dividends in the near future, depending on cash flow liquidity[15]. - Cash and bank balances decreased by approximately 18.0% from about HKD 107.3 million in 2020 to about HKD 88.0 million in 2021, attributed to a longer receivables turnover period[62]. - The company's liquidity and capital requirements are primarily related to the construction of sewage treatment facilities and operational costs, with net current assets of approximately HKD 439.0 million as of December 31, 2021[66]. - As of December 31, 2021, the company's distributable reserves available for shareholders were approximately HKD 662,191,000, compared to HKD 664,038,000 in 2020[105]. Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2021[80]. - As of December 31, 2021, Lim Chin Sean held 750,000,000 shares, representing 75% of the company's equity[120]. - The company has a stock option plan approved on October 4, 2018, which is valid for 10 years, with approximately 6 years and 8 months remaining[125]. - The maximum number of shares that may be issued upon the exercise of options under the stock option plan is limited to 100,000,000 shares, representing 10% of the total shares issued at the time of listing[126]. Governance and Compliance - The board of directors includes both executive and independent non-executive members, with specific terms for re-election every three years[114]. - The company has adopted a board diversity policy to enhance diversity in terms of gender, age, cultural background, and professional experience[183]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific responsibilities[190]. - The Audit Committee held two meetings during the reporting period to review the audited financial statements for the year ended December 31, 2020, and the external auditor's recommendations[194]. - The company has confirmed compliance with non-competition commitments from its major shareholders as of December 31, 2021[143]. Employee Relations and Safety - The company has implemented comprehensive health and safety policies to ensure a safe working environment for employees, complying with national and local regulations[91]. - During the COVID-19 pandemic, 50% of office employees were allowed to work from home, and various health measures were put in place to protect employees and visitors[92]. - The company has not experienced any strikes or major labor disputes during the reporting period, indicating good employee relations[98]. - The company has a robust employee compensation package, including basic salary, overtime pay, bonuses, and retirement benefits, to attract and retain talent[98]. Environmental Compliance - The company has not faced any penalties or claims related to environmental compliance during the reporting period, demonstrating adherence to environmental laws and regulations[95]. - The company is focused on upgrading and expanding its wastewater treatment facilities, which requires environmental impact assessments and government approvals[95].
达力环保(01790) - 2021 - 年度财报