Financial Performance - The company reported a significant decrease in net profit attributable to shareholders, down 84.3% to approximately HKD 7.1 million for the year ended July 31, 2023, compared to HKD 45.1 million for the previous year[23]. - Earnings per share for the year were HKD 0.71, a decline from HKD 4.51 in the previous year[23]. - Total revenue for the year ended July 31, 2023, was approximately HKD 272.0 million, a decrease of about HKD 123.2 million or 31.2% from approximately HKD 395.2 million for the year ended July 31, 2022[34]. - Revenue from the sale of heavy equipment and parts decreased by approximately HKD 45.2 million or 24.1%, from approximately HKD 187.5 million to approximately HKD 142.3 million[35]. - Revenue from heavy equipment leasing and related services decreased by approximately HKD 80.2 million or 40.7%, from approximately HKD 197.0 million to approximately HKD 116.8 million[36]. - Revenue from maintenance and auxiliary services increased by approximately HKD 2.2 million or 20.6%, from approximately HKD 10.7 million to approximately HKD 12.9 million[38]. - Cost of revenue for the year ended July 31, 2023, was approximately HKD 218.9 million, a decrease of about HKD 89.3 million or 29.0% from approximately HKD 308.2 million for the previous year[39]. - Gross profit decreased from approximately HKD 87.0 million to approximately HKD 53.1 million, a decline of about 39.0%[40]. - The gross profit margin for the year ended July 31, 2023, was approximately 19.5%, down from approximately 22.0% for the previous year[40]. - Other income and net gains decreased from approximately HKD 7.2 million for the year ended July 31, 2022, to approximately HKD 1.9 million for the year ended July 31, 2023, a decline of about 73.6%[41]. - Income tax expenses decreased by approximately HKD 6.6 million or about 79.5% for the year ended July 31, 2023, in line with the decrease in profit[46]. Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.5 per share, subject to approval at the upcoming annual general meeting[23]. - The proposed final cash dividend is HKD 0.005 per ordinary share, subject to approval at the upcoming annual general meeting[48]. - The company had approximately HKD 94.9 million available for distribution to shareholders as of July 31, 2023, compared to HKD 95.7 million as of July 31, 2022[109]. - The annual general meeting is scheduled for November 28, 2023, with a suspension of share transfer registration from November 23 to November 28, 2023[81]. - Shareholders holding at least 10% of voting rights can request a special general meeting to address specified matters[195]. - The company secretary must verify the identity and shareholding of the requesting shareholders[196]. - If the board fails to convene the meeting within 21 days of the request, the requesting shareholders may call the meeting themselves[196]. - The company is obligated to reimburse reasonable expenses incurred by the requesting shareholders if the board fails to hold the meeting[196]. Management and Governance - The company reported a significant increase in overall management and strategic planning under the leadership of the CEO, Mr. Zhou, who has over 25 years of experience in the heavy equipment industry[60]. - The company has expanded its board with independent directors who bring over 30 years of experience in accounting and finance, enhancing governance and oversight[68][69]. - The company is committed to maintaining high standards of corporate governance through the expertise of its independent directors[68][69]. - The management team is well-equipped to navigate market challenges and capitalize on growth opportunities in the heavy equipment industry[60][62]. - The board consists of seven members, with more than 50% being non-executive directors, including independent non-executive directors, and three out of seven directors are female, reflecting gender diversity[141]. - The independent auditor, RSM Hong Kong, is proposed for reappointment at the upcoming annual general meeting[132]. - The company has maintained good corporate governance practices in accordance with the applicable codes, with a noted deviation from code provision C.2.1[131]. - The board has established mechanisms to ensure independent opinions are provided, promoting a culture of open discussion among directors[145]. - The company emphasizes the importance of integrity and ethical conduct in its operations, supported by a code of conduct and anti-fraud policies[137]. - The board has established mechanisms to provide independent views and opinions to enhance governance practices[177]. - The company aims to continuously improve its corporate governance standards in response to changing environments and demands[177]. Operational Strategies and Innovations - The company continues to provide "one-stop service" for earthmoving equipment users and has adopted flexible fleet management strategies for its leasing business[24]. - Advanced technology solutions have been implemented, including the ConSite® system for Hitachi excavators and the Fleetm@tic® satellite-based fleet management system for Bell brand articulated dump trucks[24]. - The company has introduced several hybrid hydraulic and electric excavators in Hong Kong to meet customer demand while showcasing energy-saving performance[25]. - A series of solutions have been pre-approved for the Construction Industry Innovation and Technology Fund, including smart safety systems and AI-equipped Mobile360 systems[24]. - The company remains cautiously optimistic about the future demand for heavy equipment, anticipating an average annual investment of over HKD 100 billion in public works projects in the coming years[31]. - The company aims to leverage its extensive experience in the heavy equipment sector to explore new market opportunities and product innovations[60][61]. Employee and Workforce Information - As of July 31, 2023, the company has 133 full-time employees, a decrease from 180 employees as of July 31, 2022[124]. - The total employee cost for the fiscal year ending July 31, 2023, was approximately HKD 66.0 million, down from HKD 100.0 million in the previous year[124]. - The employee team consists of over 75% technical and operational staff, with a higher proportion of male employees compared to female employees[192]. - The board does not see the necessity to establish measurable goals for gender diversity in the workforce due to the nature of the business and labor supply conditions[192]. Risk Management and Compliance - The company emphasizes the importance of risk management to mitigate financial and operational risks[85]. - The group has complied with relevant laws and regulations that significantly impact its business and operations during the year[87]. - The audit committee is responsible for reviewing financial reports and internal control systems to ensure accurate financial assessments[165]. - An external consultant was hired to assist in identifying and assessing the group's risks and to review the effectiveness of the risk management and internal control systems[186]. - The board has authorized the audit committee to oversee the risk management and internal control systems, ensuring they are adequate and effective[185]. Charitable Contributions and Community Engagement - The group made charitable donations totaling HKD 78,000 during the year ended July 31, 2023[80].
德利机械(02102) - 2023 - 年度财报