Financial Performance - The company reported a revenue of HKD 941,493,000 for the year, an increase of 5.7% compared to HKD 890,707,000 in the previous year[24]. - Gross profit was HKD 291,524,000, reflecting a 1.3% increase from HKD 287,794,000, but the overall gross margin decreased by 1.3 percentage points to 31.0%[24]. - The overall profit attributable to shareholders decreased to HKD 62,513,000 from HKD 77,228,000 in the previous year[24]. - Retail segment revenue decreased to HKD 55,560,000 in 2018 from HKD 71,601,000 in 2017, with an operating loss of HKD 13,677,000 compared to HKD 8,447,000 in 2017[28]. - The group’s debt-to-equity ratio increased to 21.0% in 2018 from 16.7% in 2017, indicating a stronger financial position[35]. - As of December 31, 2018, the group's cash and cash equivalents totaled HKD 112,200,000, down from HKD 207,100,000 in 2017, with a bank credit facility of HKD 381,300,000[35]. Revenue Segmentation - Manufacturing business revenue reached HKD 728,934,000, with external customer revenue growing 6.0% to HKD 672,790,000, accounting for 71.5% of total revenue[26]. - Trade business revenue grew by 15.5% to HKD 213,143,000, despite challenges in the retail market[27]. Production and Capacity - The monthly production capacity increased over 30% to approximately 4 million hats, supported by nearly 5,000 employees in the Bangladesh factory[26]. - The group plans to complete the construction of a new factory in Bangladesh by the end of 2019, aiming to increase workforce to approximately 6,000 and monthly production capacity to 5 million hats, raising Bangladesh's production share from 75% to 90%[29]. - The company is focusing on enhancing production efficiency and expanding its workforce to meet strong order demand from partners[23]. - The group is actively introducing automation and information technology in production to mitigate rising labor costs in Bangladesh[29]. Investments and Expenditures - The group invested HKD 118,600,000 in commercial buildings in the US and a factory in Bangladesh, with an additional HKD 18,500,000 for facility upgrades in Bangladesh[36]. - The capital expenditure budget for the group is set at HKD 64,300,000, primarily for manufacturing expansion in Bangladesh[39]. - The group invested HKD 137,744,000 in office and warehouse construction in the US and a factory building in Bangladesh during the year, compared to HKD 116,750,000 in 2017[139]. Corporate Governance - The company emphasizes high standards of corporate governance to enhance shareholder value[63]. - The board of directors held a total of 4 meetings during the year, with all executive directors attending all meetings[64]. - The company has a total of 5 executive directors and 3 independent non-executive directors, ensuring a balanced composition for effective independent judgment[71]. - The independent non-executive directors have served for over nine years, but the board believes they still meet the independence criteria[72]. - The company has adopted a board diversity policy, considering various factors such as cultural background, professional experience, and skills to achieve diversity[75]. - The chairman and the CEO roles are clearly separated to ensure a balance of power and authority within the company[69]. Risk Management - The company has implemented a risk management process integrated into strategy formulation, business planning, and daily operations[104]. - The board is responsible for the overall risk management and internal control systems of the group[104]. - The company conducts monthly operational updates and financial reporting discussions to manage operational and financial risks[106]. - The company has established effective risk management and internal control systems to safeguard significant assets and monitor business risks[114]. Shareholder Information - The company reported a mid-term dividend of HKD 0.02 per share, totaling HKD 8,106,000, paid on October 12, 2018[131]. - The board proposed a final dividend of HKD 0.03 per share for the year ending December 31, 2018, subject to shareholder approval[131]. - The largest customer accounted for 47.5% of sales, while the top five customers collectively represented 71.3% of sales[137]. - The largest supplier contributed 23.03% to procurement, with the top five suppliers accounting for 58.35%[137]. Environmental Commitment - The company is committed to reducing its environmental impact and enhancing workplace safety as part of its sustainable development efforts[182]. - The company emphasizes environmental protection and energy conservation, implementing measures to reduce greenhouse gas emissions and improve resource utilization efficiency[193]. - The energy management strategy focuses on phasing out high-pollution, high-carbon fossil fuels in favor of electricity or cleaner fuels[200]. - The company promotes clean production and pollution reduction by optimizing production processes and implementing pollution control measures[197]. - The company engages all employees in environmental protection efforts, enhancing their awareness and responsibility towards sustainability[196]. Management and Leadership - James S. Patterson has been appointed as the Executive Director since April 2009, with over 20 years of experience in global marketing and production at New Era Cap Co., Inc.[45]. - The company has a strong management team with diverse backgrounds in finance, marketing, and operations, including individuals with over 20 years of industry experience[46][56][60].