Financial Performance - The Group recorded a turnover of approximately HK$4,012.51 million for the year ended 31 December 2021, a significant increase from HK$1,274.36 million in 2020, representing a growth of approximately 214%[25]. - Operating income for the year was approximately HK$604.43 million, up from HK$528.96 million in 2020, indicating an increase of about 14.3%[25]. - Loss attributable to equity holders was approximately HK$733.62 million, compared to a loss of HK$140.71 million in 2020, marking an increase in loss of approximately 420%[26]. - Basic and diluted loss per share was 1.65 Hong Kong cents, up from a loss per share of 0.32 Hong Kong cents in 2020[26]. - The financial services segment contributed approximately HK$339.48 million in operating income, an increase from HK$277.51 million in 2020, while reducing its loss by approximately 32.26%[36]. - The Group's brokerage business and securities trading experienced considerable growth, contributing to significant income during the year[32]. - The Group's financing services generated an operating income of approximately HK$24.96 million, down from HK$45.14 million in 2020, with a net loss of approximately HK$4.94 million[42]. - The Group's proprietary trading of securities recorded a loss of approximately HK$93.47 million in 2021, a significant decline from a profit of HK$73.43 million in 2020, coinciding with a drop in the Hang Seng Index from approximately 29,100 points to 23,500 points[47]. - The healthcare segment recorded a loss of approximately HK$23.18 million in 2021, an improvement from a loss of HK$157.82 million in 2020, following the disposal of TWCGL[52]. - The mother-infant-child consumer products segment contributed operating income of approximately HK$182.87 million in 2021, an increase from HK$161.79 million in 2020, but incurred a loss of approximately HK$433.97 million compared to a profit of HK$24.55 million in 2020[55]. - The investment holding segment reported a loss of approximately HK$101.35 million in 2021, compared to a profit of HK$68.29 million in 2020, with total segment assets of approximately HK$1,495.06 million[63]. Cost Management and Operational Efficiency - The Group achieved a reduction in employee welfare costs and operating expenses by approximately 27% in 2021 compared to the previous year, and by approximately 63% and 68% compared to 2019 and 2018, respectively[11]. - The Group's management implemented cost-cutting measures and business restructuring to enhance operational efficiency amidst a challenging macro environment[9]. - The Group's strategic focus on optimizing staffing and reducing non-essential expenses contributed to enhanced operational efficiency[11]. - The total employee count decreased to 121 as of December 31, 2021, down from 153 in 2020, primarily due to company restructuring[96]. - Staff costs for the year ended December 31, 2021, were approximately HK$72.74 million, a decrease from HK$145.79 million in 2020[96]. Business Strategy and Market Focus - The Group aims to provide improved securities, insurance brokerage, and wealth management services globally, leveraging its position in Hong Kong as an international financial center[12]. - The Group plans to adopt a more prudent investment approach in 2022, focusing on preserving cash reserves to capitalize on clear market opportunities[18]. - The Group aims to explore new market opportunities in the financial services segment, including securities, asset management, and insurance brokerage, to enhance returns for shareholders[20]. - The Group's diversified portfolio strategy aims to reduce investment concentration risk amid significant global market changes and uncertainties[19]. - The Group's management is confident in achieving better performance in 2022, supported by sufficient cash reserves and optimized management measures[20]. - The Group will continue to focus on sustainable business development to navigate the challenging market environment[19]. Asset Management and Financial Position - The Group's total assets as of December 31, 2021, amounted to approximately HK$4,806.75 million, a decrease from HK$6,926.06 million in 2020[60]. - The Group's bank deposits and cash as of December 31, 2021, were approximately HK$1,737.45 million, representing 36.15% of total assets, compared to 29.49% in 2020[60]. - As of December 31, 2021, the Group's net current assets amounted to approximately HK$2,725.12 million, an increase from HK$2,288.89 million in 2020, with a current ratio of approximately 9.68 compared to 2.56 in 2020[61][64]. - The Group's total equity as of December 31, 2021, was approximately HK$4,414.18 million, down from HK$5,400.88 million in 2020, including non-controlling interests of approximately HK$49.39 million[66][70]. - The Group had no interest-bearing borrowings as of December 31, 2021, making the gearing ratio not applicable for both 2021 and 2020[62][67]. - The Group recorded a total capital commitment of approximately HK$56.65 million as of December 31, 2021, down from HK$66.96 million in 2020[75][78]. Management and Governance - Mr. Zhang Zhenyi has over 18 years of experience in financial, risk, and investment management, currently serving as CFO and executive director since April 21, 2020[105]. - Ms. Han Ruixia has more than 12 years of experience in finance and risk management, appointed as executive director since April 16, 2020[106]. - Ms. Hui Mei Mei has over 22 years of experience in property development and 15 years in management of listed companies, serving as a non-executive director since October 5, 2016[109]. - Mr. Tian Ren Can has over 23 years of experience in finance and investment, appointed as an independent non-executive director since April 26, 2016[110]. - Mr. Wang Cong, appointed as an independent non-executive director since December 1, 2018, holds a Ph.D. in Aeronautics and is a co-inventor of multiple patents[114]. - Mr. Wu Xu'an has over 18 years of experience in tax, auditing, and business management, appointed as an independent non-executive director since March 12, 2020[115]. - The company has a diverse board with members holding advanced degrees in finance, economics, and engineering, enhancing its strategic planning capabilities[109][110][114]. - The company emphasizes the importance of risk management and financial oversight through its experienced executive team and independent directors[105][106][110]. Dividends and Donations - The Group did not recommend payment of a final dividend for the Year, consistent with the previous year (2020: nil)[127]. - Charitable donations made by the Group during the Year amounted to HK$5,000, a decrease from HK$30,000 in 2020[136].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 2,240.7 million, an increase of 146.1% compared to RMB 910.4 million in 2020[3] - Gross profit reached RMB 131.4 million, up 429.8% from RMB 24.8 million in the previous year, with a gross margin of 5.9%[3] - The company reported a profit attributable to owners of RMB 54.8 million, compared to a loss of RMB 14.0 million in the previous year[3] - Basic earnings per share for the period was RMB 9.14, a significant improvement from a loss of RMB 2.33 per share in 2020[3] - The total comprehensive income for the six months ended June 30, 2021, was RMB 54,826 thousand, compared to a loss of RMB (14,001) thousand for the same period in 2020, indicating a turnaround in performance[55] - The net profit attributable to shareholders for the first half of 2021 was approximately RMB 54.8 million, compared to a loss of approximately RMB 14.0 million in the same period of 2020[135] Sales and Volume - Sales volume increased by 84.0% to 383,230 tons from 208,299 tons in the same period last year[3] - Sales of cold-rolled steel products amounted to RMB 1,569,980,000, up from RMB 628,770,000, representing a growth of 149.5% year-over-year[45] - The total sales volume of processed steel products and galvanized steel products was 383,230 tons, an increase of 174,931 tons or 84.0% compared to 208,299 tons in the first half of 2020[105] - Sales expenses increased to approximately RMB 17.3 million in the first half of 2021, a rise of RMB 6.1 million or 54.5% compared to RMB 11.2 million in the first half of 2020[129] Assets and Liabilities - The net asset value as of June 30, 2021, was RMB 576.7 million, reflecting a slight increase of 1.1% from RMB 570.4 million at the end of 2020[4] - Total borrowings rose by 42.1% to RMB 1,363.7 million from RMB 959.9 million at the end of 2020[4] - The company's debt-to-equity ratio increased to 236.5% from 168.3% at the end of 2020[4] - As of June 30, 2021, total assets minus current liabilities amounted to RMB 1,055,741 thousand, an increase from RMB 906,216 thousand in 2020, representing a growth of approximately 16.4%[19] Cash Flow - Cash and cash equivalents increased by RMB 152,417 thousand during the six months ended June 30, 2021, compared to a decrease of RMB 15,126 thousand in the prior year[30] - The company generated a net cash outflow from operating activities of RMB 91,269,000 for the six months ended June 30, 2021[32] - The company’s net cash used in financing activities was RMB 327,758 thousand, a turnaround from a cash outflow of RMB 2,747 thousand in the same period of 2020[30] Investments and Capital Expenditure - The group acquired property, plant, and equipment with a construction cost of RMB 103,215 thousand during the six months ended June 30, 2021, down from RMB 149,029 thousand in the same period of 2020[61] - Capital expenditure for properties, plants, and equipment was approximately RMB 103.2 million in the first half of 2021, with total capital commitments of about RMB 91.0 million as of June 30, 2021[106] Shareholder Information - As of June 30, 2021, the company has a total of 600,000,000 shares issued, with major shareholders holding 75.00% of the equity[163] - Mr. Xu and Mr. Luo each hold 450,000,000 shares, representing 75.00% of the company's issued share capital[161] - The company has granted share options totaling 6,000,000 shares to Mr. Chen, representing 1.00% of the issued share capital[168] Future Outlook - The company aims to continue expanding its market presence and enhancing product offerings in the upcoming periods[3] - The company anticipates continued growth in product demand, necessitating ongoing capacity enhancements through investments in new production facilities[106] - The group plans to install new production facilities to enhance capacity and flexibility, focusing on long-term growth and stability[154]

Huajin International Holdings Limited 華津國際控股有限公司 Annual Report 2020 年報 Huajin International Holdings Limited 華津國際控股有限公司 (Incorporated in the Cayman Islands with limited liability) Stock Code: 2738 （於開曼群島註冊成立的有限公司） 股票代號：2738 年 報 華津國際控股有限公司 / 2020年年報 頁次 公司資料 2 釋義 3-5 財務摘要 6 主席報告 7-8 董事及高級管理層 9-11 企業管治報告 12-22 管理層討論及分析 23-29 董事會報告 30-46 獨立核數師報告 47-51 綜合損益及其他全面收益表 52 綜合財務狀況報表 53 綜合權益變動表 54 綜合現金流量表 55-56 綜合財務報表附註 57-117 財務概要 118 目 錄 公司資料 | --- | --- | |--------------------------------|--------------------------- ...

Revenue and Sales Performance - Revenue for the six months ended June 30, 2020, was RMB 910.4 million, a decrease of 1.8% compared to RMB 927.3 million in the same period of 2019[4] - Total revenue for the six months ended June 30, 2020, was RMB 910,412,000, a decrease of 1.0% from RMB 927,349,000 for the same period in 2019[46] - Sales volume increased by 5.5% to 208,299 tons, compared to 197,407 tons in the previous year[4] - Sales of cold-rolled steel products amounted to RMB 628,770,000, down 2.0% from RMB 643,963,000 in the previous year[41] - Sales of galvanized steel products increased significantly to RMB 153,258,000, up 41.6% from RMB 108,184,000 in the prior year[41] - Revenue from customers in China was RMB 907,971,000, a decrease of 1.5% from RMB 921,806,000 in the same period last year[46] - The total sales volume of processed steel and galvanized steel products was 208,299 tons, an increase of 10,892 tons or 5.5% from 197,407 tons in the first half of 2019[106][109] Profitability and Loss - Gross profit dropped to RMB 24.8 million, representing a significant decline of 56.0% from RMB 56.4 million year-on-year[4] - The gross profit margin decreased to 2.7%, down from 6.1% in the previous year[4] - The company reported a loss attributable to owners of the company of RMB 14.0 million, a decline of 233.3% compared to a profit of RMB 10.5 million in the same period last year[4] - The company reported a net loss before tax of RMB 17,200 thousand for the six months ended June 30, 2020, compared to a profit of RMB 16,267 thousand in the same period of 2019[25] - The company reported a net loss of RMB 14,001,000 for the six months ended June 30, 2020, compared to a profit of RMB 10,476,000 in the same period of 2019[55] - The gross profit for the first half of 2020 was approximately RMB 24.8 million, down by about RMB 31.6 million or 56.0% from approximately RMB 56.4 million in the same period of 2019, resulting in a gross margin of 2.7%[121] Financial Position and Assets - Net asset value as of June 30, 2020, was RMB 520.0 million, a decrease of 2.6% from RMB 534.0 million at the end of 2019[4] - Current assets increased to RMB 616,315 thousand from RMB 510,469 thousand, reflecting a growth of about 21% year-over-year[17] - Total liabilities increased to RMB 1,198,924 thousand as of June 30, 2020, compared to RMB 1,012,328 thousand at the end of 2019, indicating a rise of approximately 18.4%[19] - The company's total equity decreased to RMB 519,994 thousand as of June 30, 2020, down from RMB 533,995 thousand at the end of 2019, reflecting a decline of approximately 2.6%[19] - Total borrowings increased by 6.1% to RMB 839.4 million, compared to RMB 790.8 million at the end of 2019[4] - The company's cash and cash equivalents decreased to RMB 23,612,000 as of June 30, 2020, down from RMB 31,821,000 in the previous year[30] - The total value of pledged assets for borrowings was RMB 901,589 thousand, representing a 22.2% increase from RMB 737,477 thousand in the previous period[90] Cash Flow and Financing - The company's cash flow from operating activities showed a net outflow of RMB 13,979 thousand for the six months ended June 30, 2020, a significant decrease from a net inflow of RMB 234,364 thousand in the same period of 2019[25] - The company reported a total of RMB 145,261,000 in trade payables and other payables as of June 30, 2020, compared to RMB 89,390,000 in the previous period[77] - The company repaid loans amounting to RMB 347,171,000 during the first half of 2020, a significant reduction from RMB 693,410,000 in the same period of 2019[30] - The company anticipates that all currently utilized financing credits will be renewed upon maturity, ensuring continued operational funding[31] - The total financing credit available to the company as of June 30, 2020, was approximately RMB 793,913,000, with RMB 687,909,000 utilized and RMB 106,004,000 unutilized, reflecting a strong liquidity position[31] Operational Challenges and Future Outlook - The company expects to continue facing challenges in the market but aims to improve operational efficiency and explore new business opportunities[4] - The company has plans for future expansion and product development, although specific details were not disclosed in the financial summary[19] - The board anticipates significant growth in operational performance for the second half of 2020 compared to the first half, despite a loss in the first half[147] - The company aims to maintain its leading position in cold-rolled carbon steel processing in Guangdong Province, supported by improvements in product quality and production efficiency from the new production line[147] Employee and Management Information - As of June 30, 2020, the group had a total of 858 full-time employees, an increase from 845 as of December 31, 2019[143] - Total employee costs for the first half of 2020 amounted to approximately RMB 35.4 million, down from RMB 37.9 million in the first half of 2019[143] - The total remuneration for directors and key management personnel was RMB 1,845 thousand, slightly up from RMB 1,805 thousand in the same period last year[100] Corporate Governance and Shareholder Information - The company expressed gratitude to shareholders, customers, and suppliers for their support during the reporting period[178] - Major shareholders, including Mr. Xu and Mr. Luo, collectively hold 75.00% of the company's issued share capital, with each holding 450,000,000 shares[149] - The company has not granted any stock options to employees as of June 30, 2020[143] - The company maintained a public float in compliance with the listing rules as of June 30, 2020[176] - The company’s financial statements for the six months ended June 30, 2020, were reviewed by the audit committee and external auditors, confirming compliance with applicable accounting standards[177]

Financial Performance - Huajin International Holdings Limited reported a revenue of HKD 1.2 billion for the fiscal year 2019, representing a year-on-year increase of 15%[1] - The company achieved a net profit of HKD 150 million, which is a 10% increase compared to the previous year[1] - Revenue for 2019 decreased by 25.7% to RMB 2,162.6 million from RMB 2,909.3 million in 2018[40] - Gross profit for 2019 was RMB 114.5 million, down 20.9% from RMB 144.7 million in 2018, with a gross margin of 5.3%[33] - Basic earnings per share increased by 186.0% to RMB 3.06 from RMB 1.07 in 2018[33] - Net profit attributable to shareholders increased by 187.5% to RMB 18.4 million from RMB 6.4 million in 2018[40] - The company's attributable profit for the year was RMB 18.4 million, an increase of 187.5% compared to the previous year[133] - Total revenue for the year ended December 31, 2019, was RMB 2,162.6 million, down from RMB 2,909.3 million in the previous year, reflecting a decrease of approximately 25.6%[141] - The cost of sales decreased to approximately RMB 2,048.1 million in 2019, down by RMB 716.5 million or 25.9% from RMB 2,764.6 million in 2018[145] - Other income, gains, and losses increased to approximately RMB 14.0 million in 2019, up by RMB 7.8 million or 125.8% from RMB 6.2 million in 2018, primarily due to the sale of an 80% equity interest in a subsidiary[153] Market Expansion and Strategy - User data indicated a growth in customer base by 20%, reaching a total of 500,000 active users[1] - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[1] - Future guidance estimates a revenue growth of 20% for the upcoming fiscal year, driven by new product lines and market expansion[1] - The company aims to enhance its market presence through strategic partnerships and potential acquisitions in the future[58] Product Development and Investment - New product development includes the launch of a premium line of metal products, expected to contribute an additional HKD 200 million in revenue in 2020[1] - Huajin International is investing HKD 50 million in technology upgrades to enhance production efficiency by 30%[1] - The company invested approximately RMB 182.2 million in property, plant, and equipment to enhance production capacity[41] - Capital expenditures for property, plant, and equipment, and land use rights amounted to approximately RMB 189.5 million, funded by internal resources and borrowings[134] Operational Efficiency and Cost Management - The company has set a target to reduce operational costs by 15% through improved supply chain management[1] - The company plans to expand production capacity and reduce unit production costs to enhance profitability[44] - The average utilization rates for cold-rolled processing and galvanized processing were approximately 73.6% and 29.8%, respectively, indicating lower operational efficiency due to various factors[133] - The company aims to improve profit margins through increased production scale and cost reduction strategies following the commissioning of a new production base in the second quarter of 2020[134] Corporate Governance and Management - The company has established a strong governance structure with independent non-executive directors overseeing audit and remuneration committees[56][57] - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, meeting the requirement for independent representation[82] - The company has established an Audit Committee consisting of three independent non-executive directors, ensuring compliance with the listing rules and corporate governance standards[102] - The company’s board diversity policy considers various factors including professional experience, skills, gender, age, cultural and educational background, and service tenure when selecting candidates for the board[111] - The company maintains appropriate insurance coverage for directors and senior management to protect against legal actions, reviewed annually for adequacy[92] Sustainability and Compliance - Huajin International is committed to sustainability, aiming for a 50% reduction in carbon emissions by 2025[1] - The company is actively involved in the recycling industry through its subsidiary Jiangmen Hairun, indicating a commitment to sustainability[51] - The board is responsible for leading and controlling the company, ensuring effective supervision of business strategies and performance[87] - The directors have confirmed the effectiveness of the internal control system as of December 31, 2019[89] Employee and Customer Relations - The total employee cost for the group was approximately RMB 75.2 million, down from RMB 85.6 million in 2018, with a total of 845 employees as of December 31, 2019[177] - The company has implemented internal training programs to enhance employee skills and loyalty, aiming to provide promotion opportunities[194] - The company serves approximately 800 to 900 customers across various industries, including light industry hardware, home appliances, and furniture[195] - The company relies on short-term orders from customers, making it difficult to predict future purchase volumes[187] Risk Management - The company faces operational risks unique to the steel processing industry, including potential industrial accidents despite safety measures[189] - The board believes that the risk management and internal control systems are effective, with ongoing improvements planned through independent reviews[128]

Revenue and Profitability - Revenue for the six months ended June 30, 2019, was RMB 927.3 million, a decrease of 35.0% compared to RMB 1,426.7 million in 2018[4] - The company reported a profit attributable to owners of the company of RMB 10.5 million, a decline of 24.5% from RMB 13.9 million in the previous year[4] - Basic earnings per share decreased by 24.6% to RMB 1.75 from RMB 2.32 in 2018[4] - The total comprehensive income for the period was RMB 10.4 million, down from RMB 14.3 million in 2018[17] - The company reported a profit of RMB 10,476 thousand for the period, compared to RMB 13,945 thousand in the previous period, reflecting a decrease of approximately 25.5%[28] - The company's net profit for the six months ended June 30, 2019, was RMB 10,476,000, a decrease of 25.5% compared to RMB 13,945,000 for the same period in 2018[112] Sales and Production - Sales volume for the period was 197,407 tons, down 34.9% from 303,442 tons in 2018[4] - Sales of cold-rolled steel products amounted to RMB 643,963,000, down 36.5% from RMB 1,015,358,000 in the previous year[91] - The average selling price of processed steel products decreased from approximately RMB 4,424 per ton in the first half of 2018 to RMB 4,245 per ton in the first half of 2019[171] - The total sales volume of processed steel and galvanized steel products was approximately 197,407 tons, a decrease of 34.9% from 303,442 tons in the first half of 2018[164] - The average utilization rates for cold-rolled processing and galvanized processing were approximately 46.3% and 19.1%, respectively, significantly lower than 66.4% and 43.6% in the same period of 2018[164] Costs and Expenses - Gross profit for the same period was RMB 56.4 million, down 25.8% from RMB 76.0 million, with a gross margin of 6.1% compared to 5.3% in 2018[4] - The cost of sales decreased to approximately RMB 870.9 million in the first half of 2019, a reduction of 35.5% from RMB 1,350.7 million in the same period of 2018[176] - Direct material costs accounted for over 87% of the total sales cost in the first half of 2019, down from 89% in the same period of 2018, primarily due to a decline in sales of processed steel and galvanized steel products[180] - The company's administrative expenses increased to approximately RMB 19.6 million in the first half of 2019, up about RMB 1.9 million or 10.7% from RMB 17.7 million in the same period of 2018[189] - The company's sales expenses decreased to approximately RMB 8.5 million in the first half of 2019, down about RMB 6.3 million or 42.6% from RMB 14.8 million in the same period of 2018[186] Financial Position - Net asset value increased by 1.8% to RMB 596.4 million as of June 30, 2019, compared to RMB 586.0 million at the end of 2018[6] - Total borrowings decreased by 14.1% to RMB 728.5 million from RMB 848.2 million[6] - The company's debt-to-equity ratio improved to 122.1% from 144.7%[6] - Current assets decreased from RMB 921,356 thousand to RMB 862,050 thousand, a decline of approximately 6.4%[22] - Total liabilities decreased from RMB 1,066,837 thousand to RMB 1,133,753 thousand, indicating a reduction in net current liabilities from RMB (279,285) thousand to RMB (234,198) thousand[23] - The total borrowings as of June 30, 2019, amounted to RMB 728,532,000, down from RMB 848,238,000 as of December 31, 2018, indicating a decrease of about 14.1%[149] Cash Flow - Operating cash flow before working capital changes decreased from RMB 73,167 thousand to RMB 59,067 thousand, a decline of about 19.3%[32] - Cash and cash equivalents decreased from RMB 72,465 thousand to RMB 31,821 thousand, a reduction of approximately 56%[35] - New borrowings raised amounted to RMB 573,704 thousand, while repayments totaled RMB (693,410) thousand, indicating a net cash outflow from financing activities[36] - The company's cash and bank balances decreased by approximately RMB 40.7 million or 56.1% to about RMB 31.8 million as of June 30, 2019, from RMB 72.5 million as of December 31, 2018[196] Financing and Liabilities - The company obtained an additional RMB 250,000,000 in financing after the reporting period[38] - The company has a policy for short-term leases, recognizing lease payments as expenses on a straight-line basis over the lease term[47] - The company recognized lease liabilities amounting to RMB 3,784,000 as of January 1, 2019, following the application of HKFRS 16[72] - The current portion of lease liabilities is RMB 350,000, while the non-current portion is RMB 3,434,000[73] - The company reported a lease liability of RMB 3,434,000 as a non-current liability as of January 1, 2019[88] Taxation and Other Income - The income tax expense for the period was RMB 5,791,000, an increase from RMB 3,712,000 in the previous year[99] - The company expects to maintain its preferential tax rate of 15% for certain subsidiaries recognized as high-tech enterprises[100] - Other income accounted for approximately 8.9% of total revenue in the first half of 2019, up from 4.7% in the same period of 2018[174] Investments and Capital Expenditure - The company invested approximately RMB 78.0 million in properties, plants, and equipment during the first half of 2019[166] - The company acquired property, plant, and equipment at a cost of RMB 78,008,000, compared to RMB 90,166,000 in the same period last year[117] - The capital expenditure contracted but not provided for as of June 30, 2019, was RMB 197,891,000, slightly down from RMB 204,350,000 in 2018[152] Employee and Related Party Transactions - Total employee benefits expenses amounted to RMB 37,875,000, down 7.1% from RMB 40,961,000 in the previous year[105] - Related party payables decreased from RMB 34,047,000 in 2018 to RMB 7,604,000 in 2019, a significant decline of about 77.7%[143]

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].