Financial Performance - For the fiscal year ending October 31, 2021, the revenue from the environmental products business was HKD 87,268,000, a 24% increase from HKD 70,299,000 in the previous year[9]. - The revenue from the water supply business was HKD 31,252,000, a 40% increase from HKD 22,339,000 in the previous year, attributed to the resumption of water consumption after COVID-19 restrictions[9]. - The group's total gross profit for the year was HKD 34,328,000, up 16% from HKD 29,559,000 in the previous year[10]. - The gross profit margin for the group decreased to 29% from 32% in the previous year, due to increased competition in the industrial market[10]. - The company recorded a profit attributable to owners of HKD 5,062,000, compared to a loss of HKD 7,786,000 in the previous year[10]. - The group's revenue for the year ended October 31, 2021, was HKD 118,520,000, an increase of 28% compared to HKD 92,638,000 for the previous year[29]. - The net profit for the year was HKD 5,062,000, a significant recovery from a loss of HKD 7,668,000 in 2020[161]. - The company reported a total comprehensive income of HKD 13,953,000, compared to a loss of HKD 5,850,000 in the prior year[161]. - Cash generated from operating activities was HKD 17,865,000, a turnaround from a cash outflow of HKD 13,119,000 in 2020[165]. - The company's cash and cash equivalents increased to HKD 63,270,000 from HKD 55,807,000 in the previous year[166]. Revenue Breakdown - The environmental products business accounted for 74% of total revenue, while the water supply business accounted for 26%[9]. - Environmental products and water supply businesses accounted for 74% and 26% of total revenue, respectively, compared to 76% and 24% in the previous year[27]. - Revenue from the environmental products business increased by 24% to HKD 87,268,000, driven by favorable industrial market conditions in China[29]. - Water supply business revenue rose by 40% to HKD 31,252,000 from HKD 22,339,000 in the previous year[27]. Strategic Focus and Sustainability - The company is focusing on environmental management and has implemented waste management policies to reduce landfill impact[11]. - The company plans to benefit from the development of new intercity railways in the Tianjin area, which will enhance economic cooperation[14]. - The company has relocated its headquarters to a more energy-efficient office to improve operational sustainability[11]. - The company is gradually replacing old fossil fuel vehicles with electric vehicles to reduce operational costs and environmental impact[11]. - The company plans to explore new products or services that align with China's energy-saving and emission-reduction policies[28]. - The company is committed to minimizing its environmental impact and has implemented measures to monitor and reduce wastewater and sludge generated from its operations[137]. - The company has established its own sedimentation tanks for wastewater treatment, allowing for the reuse of treated water in operations[137]. Corporate Governance - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse and balanced composition[47]. - The company has implemented a board diversity policy since August 2013, focusing on various measurable aspects such as gender, age, and professional experience[50]. - The nomination committee reviews the board's composition annually to ensure it meets the company's business needs and diversity goals[53]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, to oversee specific areas of the company's affairs[73]. - The company emphasizes the importance of board diversity for enhancing overall performance and decision-making[51]. - The nomination committee evaluates potential board candidates based on integrity, commitment, and diversity factors including gender and age[61]. Risk Management - The board of directors confirmed their responsibility for overseeing the group's risk management and internal control systems, which are reviewed at least annually by the audit committee[82]. - The group has established a clear organizational structure with defined responsibilities and reporting procedures for risk management and internal controls[85]. - An independent external risk consulting firm has been conducting annual reviews of the internal control systems since November 2008, ensuring their effectiveness and adequacy[86]. - The company has identified various risks that could impact its financial condition and operational performance, including reliance on the global economy and market conditions[110]. - The company has expanded its supplier base to mitigate risks associated with supplier concentration[113]. Financial Position - As of October 31, 2021, the group's current assets net value was approximately HKD 33,672,000, an increase from HKD 26,867,000 the previous year[34]. - The current ratio as of October 31, 2021, was approximately 1.47, up from 1.34 the previous year[34]. - The group had a debt-to-equity ratio of approximately 12% as of October 31, 2021, compared to 11% the previous year[36]. - The company's available reserves for distribution as of October 31, 2021, were approximately HKD 11,113,000, including a share premium of about HKD 30,537,000[107]. - The equity attributable to the owners of the company rose to HKD 116,238,000, compared to HKD 102,285,000 in the previous year[163]. Compliance and Reporting - The directors confirmed that the consolidated financial statements for the year ending October 31, 2021, were prepared in accordance with Hong Kong Financial Reporting Standards[94]. - The independent auditor has confirmed that the consolidated financial statements fairly reflect the company's financial position as of October 31, 2021[146]. - The company has adopted new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the group's performance or financial position for the current or prior periods[172]. - The audit report was issued on January 19, 2022, by Hong Kong Certified Public Accountants[160]. Shareholder Relations - The company has established multiple channels for communication with shareholders, ensuring equal and timely access to information[89]. - The company provides various corporate communications, including annual and quarterly reports, available in printed form and on its website[91]. - The board of directors has not recommended the distribution of a final dividend for the year ending October 31, 2021[98].
环康集团(08169) - 2021 - 年度财报