CARRY WEALTH(00643)

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恒富控股(00643) - 2019 - 年度财报
2020-04-15 08:45
Financial Performance - Revenue for 2019 was HK$331.72 million, a slight increase from HK$328.51 million in 2018, representing a growth of 0.67%[26] - Loss attributable to equity holders of the Company for 2019 was HK$14.83 million, an improvement from a loss of HK$50.62 million in 2018[26] - Total assets decreased to HK$229.94 million in 2019 from HK$243.02 million in 2018, a decline of 5.5%[26] - Total liabilities for 2019 were HK$78.64 million, down from HK$82.26 million in 2018, indicating a reduction of 4.0%[26] - Total equity decreased to HK$151.31 million in 2019 from HK$160.75 million in 2018, a decrease of 5.5%[26] - Gross profit increased by 13.2% to HK$44.9 million compared to HK$39.6 million in the previous year[36] - Basic and diluted loss per share improved to (1.81) HK cents from (6.19) HK cents, a reduction of 70.8%[36] - The gross profit margin improved to 13.5% from 12.1% in the previous year[36] - For the year ended December 31, 2019, the Group's revenue increased to HK$331.7 million, up from HK$328.5 million in 2018, representing a slight growth[60] - Gross profit for the same period was HK$44.9 million, compared to HK$39.6 million in 2018, indicating an improvement in profitability[60] - Loss attributable to equity holders decreased to HK$14.8 million from HK$50.6 million in the previous year, showing a significant reduction in losses[60] Market Performance - Revenue from the US market increased by 3.7% to HK$190.6 million for the year[46] - Revenue from the garment manufacturing and trading business increased to HK$331.8 million, up from HK$329.5 million in 2018, despite challenging market conditions[60] - Revenue from US customers increased by 3.7% to HK$190.6 million, accounting for 57.5% of segment revenue, compared to 55.8% in 2018[69][71] - Revenue from European customers dropped to HK$95.8 million, representing 28.9% of segment revenue, down from 31.1% in 2018[70][72] Operational Insights - The company has production facilities located in Mainland China, focusing on garment products for internationally renowned brand names[5] - The company is engaged in securities investment alongside its garment manufacturing operations[5] - The Group's factory in Heshan, Mainland China accounted for 69.7% of garment production for overseas export, while 30.3% was produced by subcontracted factories in Cambodia[68][71] - The Group employed 756 full-time employees as of December 31, 2019, down from 879 employees in 2018[93] - The Group incurred total capital expenditure of HK$0.4 million in 2019, significantly lower than HK$8.4 million in 2018[82] Corporate Governance - The board is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[119] - The board has complied with all code provisions of the Corporate Governance Code throughout the year ended December 31, 2019, with certain deviations explained in the report[121] - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced composition for effective decision-making[125] - The Company has adopted a code of conduct for Directors' securities transactions, ensuring compliance with the Model Code[146] - The Audit Committee held four meetings during the year, focusing on reviewing the Group's financial reporting and the effectiveness of the audit process[157] Risk Management - The Group's risk management and internal control systems are based on the 2013 COSO Framework and are designed to manage risks rather than eliminate them[198] - The Audit Committee is tasked with reviewing the effectiveness of the risk management and internal control systems[193] - The Group aims to provide reasonable assurance against material misstatement or loss through its risk management systems[198] - Regular training is provided to employees to enhance their risk awareness and management capabilities[199] Future Outlook - The Group plans to continue exploring and developing markets in Europe and the US, while focusing on diversification in the healthcare industry[54] - The Group is exploring establishing self-owned garment production facilities in Southeast Asia to counteract rising production costs in Mainland China[112] - The economic performance in the US for 2020 is difficult to predict, with concerns over trade tensions and potential recession impacting consumer sentiment[110] - The Group will continue to take a cautious approach regarding its securities investment business due to the fluctuating performance of the Hong Kong stock market[114] COVID-19 Impact - The Group has implemented precautionary and control measures to minimize operational impacts from the novel coronavirus outbreak[115] - The Group has implemented a series of preventive and control measures to mitigate operational impacts from the COVID-19 outbreak, which began in January 2020[117]
恒富控股(00643) - 2019 - 中期财报
2019-09-04 09:09
Financial Performance - For the six months ended June 30, 2019, the Group's revenue amounted to HK$173.4 million, an increase of 9.0% from HK$159.0 million in 2018[13]. - Gross profit for the same period totaled HK$22.7 million, up from HK$13.1 million in 2018, resulting in a gross profit margin increase to 13.1% from 8.5%[13][17]. - Loss attributable to equity holders was HK$4.8 million, a significant improvement from a loss of HK$15.4 million in 2018[13][15]. - Basic and diluted loss per share were both 0.59 HK cents, compared to 1.89 HK cents in 2018[13][15]. - The total comprehensive loss for the period attributable to equity holders was HK$4,794,000, compared to HK$15,146,000 in 2018, marking a significant reduction[90]. - The operating loss narrowed to HK$4,243,000 from HK$10,914,000 year-over-year, indicating improved operational efficiency[87]. - The loss before income tax decreased to HK$4,837,000, down from HK$15,426,000 in the previous year, showing a reduction of 68.7%[87]. Revenue Segments - Revenue from the garment manufacturing and trading business increased by 8.8% to HK$173.5 million, with gross profit amounting to HK$22.8 million[17]. - Revenue from US customers increased by 7.7% to HK$101.8 million (2018: HK$94.5 million), accounting for 58.7% of segment revenue[24]. - Revenue from European customers rose to HK$49.7 million (2018: HK$47.0 million), representing 28.6% of segment revenue[29]. - Revenue for the garment manufacturing and trading segment was HK$173,498,000 for the six months ended June 30, 2019, compared to HK$159,419,000 in 2018, representing an increase of approximately 8.4%[171]. - The total revenue for the Group for the six months ended June 30, 2019, was HK$173,375,000, up from HK$159,001,000 in 2018, indicating a growth of about 9.0%[171]. Operational Challenges - The business environment was challenging due to escalating Sino-US trade frictions and global economic downturn[17]. - The Group's strategic decision to develop overseas production sites contributed to mitigating the impact of tariffs on exports[17]. - The Group successfully shifted production orders from Mainland China to overseas, capturing additional orders with better profit margins[17]. - The Hong Kong stock market experienced volatility due to uncertainties in Sino-US trade negotiations, impacting the Group's securities investment segment, which recorded a loss of HK$100,000[20]. - The Hong Kong stock market is expected to remain volatile due to factors such as social unrest and geopolitical tensions, prompting a cautious approach to securities investment[59]. Financial Position - As of June 30, 2019, the Group's cash and cash equivalents totaled HK$30.9 million, down from HK$71.1 million as of December 31, 2018[34]. - The Group's current ratio was 2.3 as of June 30, 2019, slightly down from 2.4 as of December 31, 2018[34]. - Bank borrowings amounted to HK$10.2 million as of June 30, 2019, an increase from HK$5.7 million as of December 31, 2018[34]. - Total assets as of June 30, 2019, were HK$242,679,000, a slight decrease from HK$243,015,000 as of December 31, 2018[93]. - Total liabilities increased from HK$82,261,000 to HK$86,719,000, with current liabilities rising from HK$70,441,000 to HK$70,595,000[95]. Employee and Operational Metrics - The Group had a total of 834 full-time employees as of June 30, 2019, down from 879 as of December 31, 2018[44]. - Selling expenses as a percentage of garment manufacturing and trading revenue increased to 2.2% (2018: 1.9%), while administrative expenses rose by HK$2.0 million to HK$23.1 million[22]. - The Group's factory in Heshan, Mainland China, accounted for 75.9% of garment production for overseas export, with 24.1% produced by subcontracted factories in Cambodia[23]. Risk Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[150]. - The Group is primarily exposed to US dollar exchange rate risk due to sales transactions, with minimal foreign exchange risk as the Hong Kong dollar is pegged to the US dollar[36]. - The Group will monitor US dollar exchange rate fluctuations and may enter into forward exchange contracts to mitigate currency risks[37]. Corporate Governance - The company has complied with all provisions of the Corporate Governance Code except for the separation of the roles of chairman and chief executive, which are held by Mr. Li Haifeng since April 1, 2017[80]. - The Audit Committee reviewed the unaudited interim results, comprising three independent non-executive directors, ensuring oversight of financial reporting[78]. Future Outlook - The Group aims to diversify into potentially lucrative business segments while reinforcing its current operations[60]. - The Group plans to streamline factory operations in Mainland China and explore additional production sites in Southeast Asia to mitigate the impact of trade disputes[58]. - The agreement between Chinese and US leaders to resume trade negotiations and freeze further tariffs is seen as a positive development amid a slowing global economy[53].
恒富控股(00643) - 2018 - 年度财报
2019-04-09 09:09
Financial Performance - Revenue for 2018 was HK$328.5 million, a 34.3% increase from HK$244.6 million in 2017[15] - Loss attributable to equity holders of the Company was HK$50.6 million in 2018, compared to a loss of HK$30.0 million in 2017[15] - Total assets decreased to HK$243.0 million in 2018 from HK$276.6 million in 2017, representing a decline of 12.1%[15] - Total liabilities increased to HK$82.3 million in 2018 from HK$74.1 million in 2017, marking an increase of 11.5%[15] - Total equity decreased to HK$160.8 million in 2018 from HK$202.4 million in 2017, a decline of 20.5%[15] - The gross profit decreased slightly to HK$39,649,000, down 1.1% from HK$40,078,000 in the previous year[25] - The gross profit margin decreased to 12.1% from 16.4% in the previous year, reflecting a decline of 4.3%[25] - The basic and diluted loss per share was HK(6.19), a 69.1% increase from HK(3.66) in 2017[25] - The Group reported a loss attributable to equity holders of HK$50.6 million, compared to a loss of HK$30.0 million in 2017[41] - The basic and diluted loss per share increased to 6.19 HK cents, up from 3.66 HK cents in 2017[41] Market and Operational Insights - The company has production facilities located in Mainland China, focusing on garment products for internationally renowned brands[6] - The company aims to enhance its market presence through strategic investments and partnerships[6] - Future outlook includes potential market expansion and new product development initiatives[6] - The Group's revenue from the garment manufacturing and trading segment increased by 43.7% to HK$329.5 million for the year, compared to HK$229.3 million in 2017[42] - Revenue from the US market rose by 31.6% to HK$183.8 million, contributing to the overall revenue growth[41] - The gross profit margin for the garment manufacturing business improved to 12.3%, up from 10.8% in the previous year[42] - The Group plans to continue exploring opportunities in the medical sector and diversifying into different regions[36] Financial Position and Ratios - Cash and cash equivalents rose by 5.4% to HK$71,084,000 from HK$67,456,000 in 2017[25] - The current ratio slightly decreased to 2.4 from 2.6, indicating a 7.7% decline in liquidity[25] - The Group's working capital represented by net current assets amounted to HK$97.7 million (2017: HK$107.5 million)[60] - The current ratio of the Group was 2.4 as of December 31, 2018 (2017: 2.6)[60] - Bank borrowings comprised term loans of HK$5.7 million (2017: HK$6.0 million) which were repayable within one year[64] - The Group's gearing ratio was -40.7% as of December 31, 2018 (2017: -30.4%)[64] Challenges and Risks - The company faced challenges due to escalating trade tensions and tariffs affecting global trade relations, impacting growth projections for 2019[28] - The operating environment is expected to remain challenging in 2019 due to the Sino-US trade war and geopolitical disruptions[87] - The Federal Reserve is likely to continue gradual rate hikes, impacting the US economy and stock market unpredictably[88] - The European Central Bank has begun winding down its quantitative easing program, which may affect economic growth and consumer sentiment in the Eurozone[91] - The Group's operations are primarily exposed to US dollar exchange risk, but the pegging of the Hong Kong dollar to the US dollar minimizes this risk[67] - The Group will monitor US dollar exchange rate fluctuations and may enter into forward exchange contracts to mitigate currency risks[68] Governance and Compliance - The Board is composed of experienced individuals, ensuring a balance of power and effective business decision-making[111] - All independent non-executive directors confirmed their independence, complying with the listing rules[112] - The Company has established a written guideline for matters requiring Board decisions, including significant financial commitments and mergers[120] - Directors participated in continuous professional development, enhancing their knowledge and skills[125] - The Company adopted a code of conduct for directors' securities transactions, ensuring compliance with the Model Code[127] - No incidents of non-compliance were noted by the Company in 2018 regarding insider information[130] - The management is responsible for day-to-day operations and must submit regular reports to the Board[121] - The Board has established a procedure for directors to seek independent professional advice at the Company's expense[118] Audit and Risk Management - The Audit Committee held four meetings during the year, focusing on financial reporting, external auditor independence, and risk management[139] - The Audit Committee reviewed changes in accounting standards and their potential impacts on the Group's financial statements[139] - The Group's risk management and internal control systems are based on the 2013 COSO Framework and are designed to manage risks rather than eliminate them[182] - For the year ended 31 December 2018, the Audit Committee and the Board were satisfied that the risk management and internal control systems were effective and adequate[194] - A risk matrix report was prepared to prioritize significant risks based on their likelihood and impact on the business[187] - Monthly independent internal audits were performed by RMSC members to test the effectiveness of selected internal controls[188] - The external auditor, PricewaterhouseCoopers, received remuneration for audit and non-audit services for the year ended 31 December 2018[199] Employee and Operational Insights - The Group employed a total of 879 full-time employees as of December 31, 2018, a slight decrease from 881 in 2017[77] - The Group's factory in Heshan, Guangdong Province, accounted for most of the garment manufacturing and trading business, employing 863 individuals as of December 31, 2018[83] - The Group provided regular training to employees to enhance their risk awareness and management capabilities[184]