Financial Performance - Huajin International Holdings Limited reported a total revenue of approximately HKD 1.2 billion for the fiscal year 2018, representing a year-on-year increase of 15%[13]. - The company achieved a net profit of around HKD 150 million, which is a 10% increase compared to the previous year[13]. - Revenue for 2018 was approximately RMB 2,909.3 million, an increase of 1.6% from RMB 2,863.5 million in 2017[20]. - The company's profit attributable to shareholders was RMB 6.4 million, which reflects a significant decrease of 93.1% year-over-year[90]. - Basic earnings per share fell to RMB 1.07 from RMB 15.44, a decrease of 93.1%[20]. - The company reported a gross margin of 30%, which is consistent with industry standards and reflects effective cost management strategies[13]. - As of December 31, 2018, the company's gross profit decreased to approximately RMB 144.7 million, a reduction of 31.8% compared to approximately RMB 212.3 million for the same period in 2017, with a gross margin of 5.0%, down from 7.4%[111]. - The sales cost for the year ended December 31, 2018, increased to approximately RMB 2,764.6 million, an increase of RMB 113.4 million or 4.3% from RMB 2,651.2 million for the year ended December 31, 2017[102]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next three years[13]. - The company has outlined a future outlook projecting a revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[13]. - The company aims to expand its market share and maintain its leading position in Guangdong Province's cold-rolled carbon steel processing sector[25]. - Domestic sales in the Chinese market contributed over 99% of the company's revenue, with the remaining portion coming from Southeast Asian customers[99]. Product Development and Investment - New product development initiatives are underway, with an investment of HKD 50 million allocated for R&D in innovative metal products[13]. - The company plans to invest approximately RMB 181.1 million in property, plant, and equipment to enhance production capacity and reduce unit production costs[22]. - The company anticipates that the new production base in Gujing Town will commence operations by the end of 2019, which is expected to enhance production efficiency and reduce unit production costs[94]. Corporate Governance - The company reported a commitment to high levels of corporate governance, adhering to the corporate governance code as per the listing rules[41]. - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, complying with the requirement of at least one-third being independent[48]. - The company has established sufficient internal control systems to ensure compliance with applicable laws and regulations[55]. - The board is responsible for developing and reviewing corporate governance policies and practices, ensuring compliance with legal and regulatory requirements[46]. - The company has implemented a governance structure that separates the roles of the Chairman and the CEO to ensure a balance of power[62]. Risk Management - The company has established a risk management framework to identify and manage significant risks faced by the group[85]. - The board of directors is responsible for the risk management and internal control systems, ensuring assets are safeguarded and financial records are reliable[85]. - The internal audit department evaluates the effectiveness of the company's risk management and internal control policies and procedures[86]. Shareholder Communication and Value - The company emphasizes effective communication with shareholders, particularly through annual general meetings, to enhance transparency and shareholder value[83]. - The company has a strong focus on attracting external investment and protecting shareholder interests through effective governance practices[41]. - The independent non-executive directors are subject to re-election at the annual general meeting, ensuring ongoing accountability to shareholders[63]. Acquisitions and Financial Position - Huajin International Holdings Limited is exploring potential acquisitions to enhance its product offerings and market reach, with a budget of HKD 100 million set aside for this purpose[13]. - On September 7, 2018, the company entered into an acquisition agreement to purchase the remaining 40% equity of Jiangmen Jin Yuan Metal Products Co., Ltd. for a total consideration of RMB 10.1 million[127]. - As of December 31, 2018, the company's total borrowings amounted to approximately RMB 848.0 million, down from RMB 958.0 million in 2017, with a debt-to-equity ratio of approximately 1.45 times[122]. Employee and Director Information - The total employee cost for the group in 2018 was approximately RMB 85.6 million, down from RMB 98.8 million in 2017, with a total of 1,044 full-time employees as of December 31, 2018[132]. - The financial director, Huang Zeqiang, has over 15 years of experience in accounting and has worked with various listed companies[38]. - The company has appointed Xu Songman as the Sales Director, responsible for domestic and overseas sales and logistics services since July 2005[30]. Share Capital and Major Shareholders - The company has a total issued share capital of 600,000,000 shares as of December 31, 2018[200]. - Mr. Xu and Mr. Luo collectively control 75.00% of the company's equity through Intrend Ventures, Zhongcheng, and Haiyi[198]. - The company’s major shareholders are recognized as acting in concert, ensuring a unified control over the majority of shares[198].