Financial Performance - Revenue for the six months ended April 30, 2022, was HKD 49,740,000, a decrease of approximately 16% compared to HKD 59,211,000 for the same period in 2021[3] - Profit attributable to owners for the six months ended April 30, 2022, was HKD 3,099,000, compared to HKD 1,674,000 for the same period in 2021[5] - Basic earnings per share for the six months ended April 30, 2022, was approximately HKD 0.48, an increase from HKD 0.26 for the same period in 2021[6] - Gross profit for the six months ended April 30, 2022, was HKD 15,301,000, down from HKD 16,599,000 in the previous year[5] - The company reported a total comprehensive income of HKD 6,660,000 for the six months ended April 30, 2022, compared to HKD 4,916,000 for the same period in 2021[6] - The profit attributable to owners for the six months ended April 30, 2022, was HKD 3,099,000, compared to HKD 1,674,000 for the same period in 2021, representing an increase of 85%[18] - The company reported a total comprehensive income of HKD 6,660,000 for the six months ended April 30, 2022, up from HKD 4,916,000 in the same period of 2021, marking a 35% increase[18] - Operating profit for the three months ended April 30, 2022, was HKD 752,000, compared to HKD 904,000 for the same period in 2021, representing a decrease of 16.8%[25] - For the six months ended April 30, 2022, the operating profit was HKD 3,099,000, up from HKD 1,674,000 in 2021, indicating an increase of 84.8%[29] Revenue Segmentation - The water supply segment generated revenue of HKD 17,122,000 for the six months ended April 30, 2022, an increase of 29% from HKD 13,289,000 in 2021[22] - Revenue from environmental products decreased to HKD 32,618,000 for the six months ended April 30, 2022, down 29% from HKD 45,922,000 in the same period of 2021[22] - Revenue from the environmental products business decreased by 29% to HKD 32,618,000, while revenue from the water treatment business increased by 29% to HKD 17,122,000[50] Assets and Liabilities - Cash and cash equivalents at the end of the period were HKD 53,795,000, a decrease from HKD 63,270,000 at the end of the previous period[11] - Total assets less current liabilities as of April 30, 2022, amounted to HKD 136,440,000, an increase from HKD 126,137,000 as of October 31, 2021[9] - The company’s total assets as of April 30, 2022, were HKD 189,568,000, a slight decrease from HKD 190,416,000 as of April 30, 2021[24] - The total liabilities decreased to HKD 66,670,000 as of April 30, 2022, from HKD 83,215,000 in the same period of 2021, reflecting a reduction of 20%[24] - As of April 30, 2022, the debt-to-equity ratio decreased to 11%, down from 12% on October 31, 2021, due to an increase in total equity[58] Cash Flow and Operating Activities - The net cash used in operating activities for the six months ended April 30, 2022, was HKD (7,258,000), compared to HKD (7,099,000) for the same period in 2021[11] - The company recorded a net exchange loss of HKD 513,000 for the six months ended April 30, 2022, compared to a net gain of HKD 108,000 in 2021[25] Employee and Administrative Costs - The total employee costs, including directors' remuneration, amounted to HKD 7,993,000 for the six months ended April 30, 2022, compared to HKD 7,789,000 in 2021, reflecting a rise of 2.6%[25] - The total employee cost for the six months ended April 30, 2022, was approximately HKD 8,000,000, compared to HKD 7,800,000 for the same period in 2021[63] - Administrative expenses for the six months ended April 30, 2022, decreased by 5% to HKD 11,579,000 from HKD 12,125,000 in the previous year[54] Governance and Compliance - The company maintained a conservative financial policy, continuously assessing clients' financial conditions to mitigate credit risk[59] - The Environmental, Social, and Governance (ESG) Committee was established in January 2022 to provide advice to the board on related matters[79] - The Audit Committee, formed in December 2001, oversees the financial reporting process and internal control systems, ensuring compliance with applicable accounting standards[80] - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[81] - The company emphasizes transparency and compliance in its financial reporting and governance practices[80] - The ESG Committee is chaired by Mr. Wu Zhengwei, indicating a commitment to sustainability and governance[79] - The Audit Committee is chaired by Mr. Zhou Jinrong, highlighting the importance of independent oversight in financial matters[80] - The company aims to enhance its internal controls and financial reporting processes through the Audit Committee's oversight[80] - The board composition reflects a balance of executive and independent directors, promoting effective decision-making[81] - The establishment of the ESG Committee aligns with global trends towards greater corporate responsibility and sustainability[79] Miscellaneous - The company did not recommend an interim dividend for the six months ended April 30, 2022, consistent with the previous year[28] - There were no significant acquisitions or disposals of subsidiaries or associated companies during the six months ended April 30, 2022[65] - There were no significant contingent liabilities as of April 30, 2022, consistent with the previous year[64] - The company did not purchase or sell any of its listed securities during the six months ended April 30, 2022[72] - The company had pledged bank deposits of approximately HKD 9,000,000 as of April 30, 2022, unchanged from October 31, 2021[62] - As of April 30, 2022, the company had 76 employees, an increase from 72 employees in the previous year[63] - Major shareholders included Jiang Lili, who held 344,621,200 shares, representing 53.06% of the issued shares as of April 30, 2022[69] - The company plans to explore new products or services that align with China's energy-saving and emission-reduction policies[51] - The Tianjin water treatment plant has exclusive rights to supply processed water to certain areas, which is expected to benefit from the completion of new intercity railways[51]
环康集团(08169) - 2022 - 中期财报