Revenue and Business Performance - The company's revenue increased by 4% from HKD 97,595,000 in the previous year to HKD 101,924,000 in the current fiscal year[6]. - The contribution of the environmental products business to total revenue decreased from 67% to 54%, while the water supply business increased from 33% to 46%[6]. - Revenue from the Tianjin water plant rose by 44% from HKD 32,345,000 to HKD 46,628,000 due to increased supply of treated water[7]. - The environmental products business revenue decreased by 15% from HKD 65,250,000 to HKD 55,296,000[9]. - The company's revenue increased by 4% to HKD 101,924,000 for the year ending October 31, 2023, compared to HKD 97,595,000 in the previous year[27]. - The environmental products business revenue decreased by 15% to HKD 55,296,000, while the water supply business revenue increased by 44% to HKD 46,628,000[31]. - The gross profit for the year rose by 18% to HKD 36,932,000, with the gross profit margin increasing from 32% to 36%[31]. - Operating profit increased to HKD 9,463,000, compared to HKD 7,169,000 in the prior year, reflecting a rise of 32.1%[179]. - Net profit attributable to the owners of the company was HKD 5,593,000, a 27.7% increase from HKD 4,379,000 in the previous year[179]. - Basic and diluted earnings per share rose to HKD 0.86, up from HKD 0.67, marking a growth of 28.4%[179]. Financial Position and Assets - The company's net current assets increased to approximately HKD 43,841,000, up from HKD 34,020,000 the previous year[34]. - Total assets as of October 31, 2023, were HKD 120,837,000, slightly down from HKD 122,012,000 in the previous year[181]. - Current assets increased to HKD 93,543,000 from HKD 84,046,000, showing an increase of 11.3%[181]. - The company reported a decrease in total liabilities, with current liabilities at HKD 49,702,000, down from HKD 50,026,000[181]. - Total equity as of October 31, 2023, is HKD 107,561,000, a slight decrease from HKD 107,678,000 in 2022[182]. - Cash and cash equivalents remained stable at HKD 41,485,000, compared to HKD 41,064,000 in the previous year[181]. Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code as per GEM listing rules, with a noted exception regarding attendance at the annual general meeting[45]. - The board of directors consists of two executive directors, one non-executive director, and four independent non-executive directors, ensuring a diverse skill set[49]. - The company has adopted a conservative financial policy to minimize credit risk through continuous credit assessments of customers[38]. - The company has established four committees: Compensation Committee, Nomination Committee, Environmental, Social and Governance Committee, and Audit Committee to oversee specific areas of corporate affairs[78]. - The company has a clear written scope of authority for all committees, which is published on the GEM website and the company's website[78]. - The independent auditor, Hong Kong Li Xin De Hao CPA Limited, has audited the consolidated financial statements for the year ended October 31, 2023[161]. - The company is committed to maintaining compliance with the Hong Kong Financial Reporting Standards and the Companies Ordinance[173]. Environmental and Social Responsibility - The company received the "2022-2023 ESG Corporate Award" from the renowned Chinese news weekly "Asia Weekly," recognizing its commitment to environmental, social, and governance strategies[11]. - The company aims to balance business development with environmental responsibility, striving to reduce pollution and enhance shareholder value through sustainable practices[11]. - The environmental products business is focused on promoting sustainable development in China, with products applied in marine machinery and clean energy sectors[29]. - The company has implemented measures to monitor and reduce wastewater and sludge generated from its water treatment operations, ensuring compliance with environmental regulations in China[150]. - The company is committed to minimizing its environmental impact and complies with all relevant environmental regulations[148]. Risk Management - The company identified risks related to fraud and errors that could lead to significant misstatements in the financial statements, emphasizing the importance of internal controls[178]. - The board confirmed its responsibility for overseeing the group's risk management and internal control systems, which are reviewed at least annually by the audit committee[89]. - The group has established a clear organizational structure with defined responsibilities and reporting procedures for risk management and internal controls[92]. - The independent external risk advisory firm conducts annual reviews of the internal control systems, ensuring their effectiveness and adequacy[93]. Shareholder and Stakeholder Relations - The company provides various channels for shareholder communication, including printed corporate communications and regular announcements through the stock exchange[97]. - The company maintains good relationships with key stakeholders, including employees, major customers, suppliers, and banks[153]. - The company has a significant shareholder, Jiang Lili, who holds 344,621,200 shares, representing 53.06% of the issued share capital[136]. Future Outlook and Strategic Plans - The company is optimistic about the development potential of its environmental products business, particularly in clean energy sectors[9]. - The company plans to maintain momentum in integrating sustainable development into its business activities and improving overall ESG performance[11]. - The company plans to expand its service network to other regions in mainland China to enhance operations in energy-saving hydraulic machinery and components[28]. - The company anticipates positive impacts from the completion of new intercity railways near its water supply plant in Tianjin, enhancing economic integration in the area[29].
环康集团(08169) - 2023 - 年度财报