Financial Performance - The group's revenue for the year was approximately HKD 1,131.8 million, a decrease of about 19.0% compared to HKD 1,397.5 million in 2019[23]. - Gross profit fell by approximately 9.8% to about HKD 63.5 million, with a gross margin increase of 0.6 percentage points to approximately 5.6%[23]. - The net profit attributable to shareholders turned from a loss of approximately HKD 11.0 million last year to a profit of approximately HKD 51.4 million this year, resulting in a net profit margin of approximately 4.5%[23]. - The cleaning segment's revenue decreased by 30.5% to HKD 679.5 million, accounting for 60.0% of total revenue[25]. - The pest management segment recorded a revenue increase of approximately 56.3% to HKD 111.3 million, representing 9.9% of total revenue[25]. - The group's revenue for the year ended December 31, 2020, was approximately HKD 1,131.8 million, a decrease of about 19.0% compared to HKD 1,397.5 million in 2019[41]. - The service costs for the same period were approximately HKD 1,068.3 million, accounting for about 94.4% of the total revenue, down from HKD 1,327.0 million in 2019[42]. - The gross profit for the year was approximately HKD 63.5 million, a decrease of about 9.8% from HKD 70.5 million in 2019[43]. - Other income increased significantly to approximately HKD 95.5 million from HKD 5.2 million in 2019, representing a growth of about 17.4 times, mainly due to government subsidies[45]. - The net cash generated from operating activities was approximately HKD 162.3 million, up from HKD 34.4 million in 2019[54]. - The group's total current assets and current liabilities were approximately HKD 355.2 million and HKD 264.6 million, respectively, resulting in a current ratio of about 1.3 times[54]. - The group's financial costs decreased to approximately HKD 7.8 million from HKD 10.5 million in 2019, representing about 0.7% of total revenue[51]. - The group achieved a profit attributable to shareholders of approximately HKD 51.4 million, a turnaround from a loss of HKD 11.0 million in the previous year[52]. - Capital expenditure for the year was approximately HKD 17.1 million, down from HKD 25.3 million in 2019[56]. - As of December 31, 2020, the company's distributable reserves amounted to approximately HKD 99.5 million, with about HKD 14.9 million proposed for the final dividend to shareholders[86]. Environmental Initiatives - Baguio Green Group Limited reported a comprehensive performance for the year ending December 31, 2020, amidst challenges posed by the pandemic, highlighting the increased public focus on sustainable living environments[7]. - The company aims to enhance its one-stop environmental service solutions, which include cleaning, resource recovery, waste management, and integrated pest management, by introducing advanced management technologies[7]. - Baguio has adopted various IT solutions to improve operational efficiency, including the "iAttendency" platform for employee management and a GIS platform for fleet management[8]. - The company is participating in numerous government environmental service tenders, aligning with the Hong Kong government's "Resource Recycling Blueprint 2035" to achieve zero waste to landfill[9]. - Baguio's vision includes leveraging its growing waste management technology platform to track waste and carbon footprints, enhancing sustainability efforts for clients[11]. - The company has developed the "iRecycle" platform, integrating AI and big data analytics to encourage household participation in recycling, aiming to improve recycling coverage and efficiency[12]. - The company signed contracts with the Environmental Protection Department for the collection and recycling of recyclable paper materials[20]. - Medical waste collection revenue surged due to community quarantine facilities and widespread testing initiatives related to COVID-19[20]. - The "iRecycle" platform successfully collected 176,564 plastic bottles and 30,447 glass bottles in 2020, promoting public awareness of waste recycling[21]. - The company is exploring processing methods for other materials, such as PP plastic containers and paper, to expand its recycling network[21]. - The Hong Kong government allocated HKD 5,903.1 million for environmental hygiene and related services during 2020-2021, representing a significant increase of 19.5%[38]. - The government aims to reduce per capita solid waste disposal and enhance recycling rates as part of the "Hong Kong Resource Recycling Blueprint 2035" initiative[38]. - The Environmental Protection Department (EPD) plans to establish a community recycling network with recycling stations and mobile points across 18 districts in Hong Kong[38]. - The proposed Producer Responsibility Scheme for Plastic Beverage Containers (PPRS) will charge suppliers for recycling fees and offer public incentives for returning used containers[39]. - The group is set to operate Hong Kong's first food-grade plastic recycling facility in collaboration with EcoGreen Group (Asia) Limited and Swire Beverages, expected to process 35,000 tons of waste PET and HDPE annually[39]. - The facility is projected to handle up to 100 tons of plastic daily, starting operations in the second half of 2021[39]. - The group is actively participating in various sustainability organizations to share best practices and enhance its sustainable development efforts[36]. Market Position and Competition - Baguio's extensive service network and investment in digitalization and innovative technologies position it to seize new development opportunities in a competitive market[12]. - The company secured multiple service contracts with large private enterprises and public institutions, enhancing its market position in integrated environmental services[17]. - The pest control business experienced stable growth, driven by increased demand from commercial buildings during the pandemic[17]. - The company anticipates continued pressure on the profitability of gardening services due to intensified market competition[19]. - The group maintained a high bid success rate of approximately 37% for the year, slightly down from 38% in 2019[27]. Corporate Governance and Management - The company expresses gratitude to its board and employees for their support during challenging times, aiming to deliver ideal returns to shareholders in the future[13]. - The board proposed a final dividend of HKD 0.036 per share, totaling HKD 14,940,000, subject to shareholder approval[24]. - The company has maintained appropriate directors' and officers' liability insurance throughout the fiscal year[97]. - The board of directors includes Wu Yongkang as chairman and Wu Yuqin as CEO, with several other executive and independent non-executive directors[92]. - The company has a service contract with each executive director, allowing termination with a written notice of at least three months[95]. - The company has confirmed compliance with the employee written guidelines regarding securities trading[162]. - The company maintains a diverse board composition, considering factors such as gender, age, cultural background, and professional experience[184]. - The remuneration committee has held one meeting this year to review the compensation packages for directors and senior management[191]. - The company's remuneration policy aims to provide competitive market-level salaries to attract and retain talented employees[190]. - The board has established committees including the remuneration committee, nomination committee, and audit committee, each with specific written terms of reference[186]. - The independent non-executive directors have confirmed their independence according to the listing rules[168]. - The company has implemented appropriate insurance arrangements for directors and senior management against legal actions arising from their duties[171]. - The board is responsible for overseeing the company's business, strategic decisions, and performance[169]. - The company will regularly review its board diversity policy to ensure its ongoing effectiveness[185]. - The Nomination Committee is responsible for reviewing the board's structure, size, and composition annually, ensuring alignment with the company's corporate strategy[194]. - The committee evaluates candidates based on skills, knowledge, experience, and integrity, aiming for board diversity[194]. - The Audit Committee oversees financial reporting, risk management, and internal controls, maintaining a proper relationship with external auditors[197]. - The Audit Committee has reviewed financial statements for the six months ending June 30, 2020, and the year ending December 31, 2020[198]. - The Nomination Committee held one meeting this year, with all members in attendance, to review the board's structure and composition[196]. - The Audit Committee is tasked with reporting any significant fraud, regulatory breaches, or internal control failures to the board[197]. - The Nomination Committee has adopted a nomination policy outlining the criteria and procedures for appointing and reappointing directors[194]. - The Audit Committee is responsible for recommending the appointment, reappointment, and removal of external auditors to the board[197]. - The Nomination Committee includes independent non-executive directors, ensuring impartiality in the nomination process[196]. - The Audit Committee members possess appropriate professional qualifications and financial experience[198]. Employee and Operational Insights - The company has implemented various in-service training programs to enhance frontline service and management quality[62]. - As of December 31, 2020, the company employed 5,255 staff, a decrease from 7,457 staff in 2019[62]. - The company maintains a focus on ensuring sufficient reserves for future development while continuing to provide returns to shareholders[82]. - The company’s financial performance and overall financial condition are key factors in determining dividend payments[82]. - The company’s major business nature did not undergo significant changes during the year[79]. - The company’s reserves and changes in reserves are detailed in the consolidated financial statements[84]. - The company’s capital structure and changes in share capital are outlined in the consolidated financial statements[85]. - The company’s risk management and internal control systems are discussed in the corporate governance report[80]. - The company’s environmental policies and stakeholder relationships are addressed in the ESG report[80]. - The company’s financial performance for the year is presented in the consolidated income statement and other comprehensive income[82]. - The company has not purchased, redeemed, or sold any of its listed securities during the year[90]. - The major shareholders include Wu Yongkang, who holds 67.27% of the shares through Baguio Green (Holding) Limited, and Wu Yuqin, who directly holds 6.44%[101]. - The company has entered into a continuous related party transaction with Nexus Solutions Limited for IT services, which has been extended until December 31, 2022[107]. - NSL provided IT products and services to the group amounting to approximately HKD 3,297,000, which did not exceed the annual cap of HKD 4,000,000 for the year[108]. - Sales to the group's top five customers accounted for 50.8% of total sales for the year, down from 61.0% in the previous year, with the largest customer contributing 17.8%[112]. - Purchases from the group's top five suppliers represented 26.8% of total purchases for the year, a decrease from 28.5% in the previous year, with the largest supplier accounting for 10.1%[112]. - The company has not entered into any significant contracts with its controlling shareholders during the year[111]. - The remuneration committee reviews the compensation policy based on the group's operational performance and market practices[114]. - The company has not established any management contracts for regulating and managing significant parts of the group's business during the year[113]. - The company has adopted a share option scheme to incentivize qualified participants contributing to the group's success[130]. - The total number of shares that may be issued under the share option scheme shall not exceed 10% of the issued shares as of the listing date, which is 40,000,000 shares[130]. - The company has not recorded any waiver of remuneration by directors during the year[116]. - The independent non-executive directors have reviewed the continuing connected transactions and confirmed they were conducted on normal commercial terms[108]. - The company granted options to subscribe for a total of 5,216,000 shares, representing approximately 1.26% of the total issued shares as of the report date[142]. - During the year, 100,000 options lapsed due to the resignation of employees who were granted the options[142]. - The exercise price for the options is set at HKD 1.00 per share[143]. - The options plan has a remaining term of 10 years from April 24, 2014, unless terminated early by shareholders[142]. - No new options were granted during the year under the options plan[146]. - The company has adopted a share award scheme to recognize and reward contributions from eligible participants[148]. - As of the report date, no shares have been granted under the share award scheme[149]. - The company maintains a public float of at least 25% of its total issued share capital[154]. - The audit committee reviewed the audited consolidated annual results for the year and assessed the effectiveness of the company's risk management and internal control systems[155]. - KPMG has been nominated for reappointment as the company's auditor at the upcoming annual general meeting[156]. - The board of directors consists of eight members, including five executive directors and three independent non-executive directors[163].

Revenue and Profitability - Revenue for the first half of 2020 was HKD 591.1 million, a decrease of 17.8% compared to HKD 719.1 million in the same period of 2019[9]. - The company reported a gross profit of HKD 33.0 million, down 23.1% from HKD 42.9 million year-on-year[9]. - Operating profit increased by 89.1% to HKD 16.6 million, compared to HKD 8.8 million in the previous year[9]. - Profit attributable to equity shareholders surged by 191.0% to HKD 11.2 million, up from HKD 3.8 million in the same period last year[9]. - The basic earnings per share rose to HKD 2.69, compared to HKD 0.92 in the previous year[9]. - The group's revenue for the first half of 2020 was approximately HKD 591.1 million, a decrease of about 17.8% compared to HKD 719.1 million in the same period of 2019[20]. - Gross profit fell by approximately 23.1% to about HKD 33.0 million, with a gross profit margin decrease of 0.4 percentage points to approximately 5.6%[20]. - Profit attributable to equity shareholders was approximately HKD 11.2 million, an increase of about 191.0% compared to HKD 3.8 million in the same period of 2019[20]. - The total comprehensive income for the period was approximately HKD 11.7 million, compared to HKD 3.6 million for the same period in 2019[73]. - The pre-tax profit for the six months ended June 30, 2020, was HKD 10,749,000, compared to HKD 4,334,000 for the same period in 2019, indicating an increase of approximately 147.5%[118]. Impact of COVID-19 - The COVID-19 pandemic significantly impacted the Hong Kong economy, with a reported GDP decline of 9.0% in Q2 2020[14]. - The company faced challenges in the environmental and cleaning industry due to increased demand for cleaning and disinfection services amid the pandemic[14]. - The Hong Kong government launched an HKD 800 billion employment support scheme to help service companies like Baguio mitigate the economic impact of the pandemic[14]. - The group received government subsidies totaling 12,210,000 HKD under the Employment Support Scheme to retain employees during the COVID-19 pandemic[140]. Revenue Segmentation - The cleaning services segment generated revenue of HKD 361.7 million, accounting for 61.2% of total revenue, a decrease of 29.6% from the previous year[31]. - The pest management segment saw revenue growth of approximately 87.3%, reaching HKD 97.9 million, indicating strong demand for professional gardening and arboriculture services[32]. - The clean services segment generated revenue of HKD 361,691,000, while the gardening services, pest management, and waste management segments generated revenues of HKD 97,939,000, HKD 51,657,000, and HKD 79,768,000 respectively[111]. Cost and Expenses - Service costs for the same period were approximately HKD 558.1 million, accounting for about 94.4% of the group's revenue, compared to 94.0% in the previous year[46]. - Sales and marketing expenses decreased by approximately 46.4% to about HKD 0.6 million from HKD 1.1 million in the previous year[51]. - Administrative expenses increased by approximately 4.8% to about HKD 37.6 million, accounting for about 6.4% of total revenue[52]. - The group reported a decrease in employee costs to 490,804,000 HKD for the six months ended June 30, 2020, from 603,613,000 HKD in the same period of 2019, a reduction of approximately 19%[140]. Assets and Liabilities - As of June 30, 2020, the company's total assets amounted to HKD 367,997,000, a decrease of 13.1% from HKD 423,201,000 as of December 31, 2019[79]. - The company's total liabilities decreased to HKD 342,240,000 as of June 30, 2020, from HKD 419,941,000 as of December 31, 2019, indicating a reduction of 18.5%[79]. - The company's bank borrowings decreased by approximately 17.3% to HKD 194.5 million as of June 30, 2020, down from HKD 235.1 million as of December 31, 2019[60]. - The company's asset-liability ratio improved to approximately 1.0 times as of June 30, 2020, down from 1.2 times as of December 31, 2019[60]. Cash Flow - The net cash generated from operating activities during the period was approximately HKD 70.7 million, a significant increase from HKD 8.1 million in the first half of 2019[59]. - The company's cash and cash equivalents increased to HKD 41,118,000 as of June 30, 2020, up from HKD 22,887,000 at the beginning of the period[87]. - The company reported a net cash outflow from financing activities of HKD 52,857,000 for the period, compared to a net cash inflow of HKD 10,471,000 in the previous year[87]. Future Plans and Developments - The group plans to operate Hong Kong's first food-grade plastic recycling facility by the end of 2020, expected to process up to 100 tons of plastic daily and recycle 35,000 tons of PET and HDPE annually[41]. - The group is committed to expanding its recycling network and exploring processing methods for food waste and paper to increase the variety of recyclable materials[29]. - The group is committed to expanding its local recycling business and enhancing its cleaning and pest management core services, anticipating the implementation of a solid waste charging scheme in the near future[41]. Miscellaneous - The group launched a blockchain-supported recycling platform "iRecycle" in April 2020, collecting over 64,000 plastic and glass bottles within the first 100 days[29]. - The company has adopted the revised Hong Kong Financial Reporting Standard 16 regarding leases, which allows for certain rent concessions related to the COVID-19 pandemic to be recognized as variable lease expenses[101]. - The group did not declare any interim dividend for the six months ended June 30, 2020, compared to 2,905,000 HKD declared in the same period of 2019[142].

Business Challenges and Opportunities - Baguio Green Group Limited faced significant challenges in 2019 due to social unrest in Hong Kong and the onset of COVID-19, impacting its operations and the recycling business [9]. - The company believes that the demand for environmental services will continue to grow in daily life, driven by increased public awareness of hygiene and waste management [9]. - Baguio is committed to long-term sustainable environmental development and sees 2020 as a significant opportunity for internal growth [11]. - The company plans to continue investing in internal improvements, enhancing technology, and securing more partnership agreements for long-term business development [11]. - The Hong Kong government plans to establish a HKD 200 million low-carbon green research fund and issue a total of HKD 66 billion in green bonds over the next five years, creating opportunities for the environmental services sector [41]. Financial Performance - The company's revenue for the year was approximately HKD 1,397.5 million, a slight decrease of about 2.2% compared to HKD 1,429.5 million in 2018 [27]. - Gross profit fell by approximately 24.2% to about HKD 70.5 million, with a gross margin decrease of 1.5 percentage points to around 5.0% [27]. - The company reported a net loss attributable to shareholders of approximately HKD 11.0 million, compared to a profit of about HKD 17.9 million in the previous year [27]. - Administrative expenses increased by approximately 8.8% to HKD 80.2 million, accounting for about 5.7% of total revenue [52]. - Financial costs rose to approximately HKD 10.5 million in 2019, representing about 0.8% of total revenue, due to increased interest rates and higher average bank borrowings [56]. Revenue Segmentation - The waste management and recycling segment saw a revenue increase of 23.0%, reaching HKD 164.8 million, contributing 11.8% to total revenue [30]. - The pest management segment experienced a significant revenue growth of 60.7%, totaling HKD 71.2 million, which accounted for 5.1% of total revenue [30]. - The cleaning segment's revenue decreased by 8.3% to HKD 977.3 million, representing 69.9% of total revenue [30]. Investments and Developments - The company established a joint venture with ALBA Group Asia Limited and Swire Beverages to build the first food-grade plastic recycling facility in Hong Kong, marking a significant milestone in local plastic processing [10]. - The new facility is expected to process and recycle approximately 35,000 tons of waste PET and HDPE plastics annually, focusing on international markets for food-grade recycled products [11]. - The company is developing a one-stop smart phone application to enhance public engagement in recycling, which is currently in the final development stage [41]. - The company plans to invest more resources in collecting glass bottles and plastic containers to promote local recycling efforts [41]. Shareholder Returns and Dividends - The company did not recommend a final dividend for the year, compared to a final dividend of HKD 0.007 per share in 2018 [28]. - The company aims to continuously provide returns to shareholders while considering financial performance, debt-to-equity ratio, and capital needs when deciding on dividends [96]. - The financial performance and overall financial position of the group are key factors in determining dividend payments [96]. - The board considers overall market conditions and other relevant factors when making decisions regarding dividends [96]. Corporate Governance and Risk Management - The company has a comprehensive risk management and internal control system in place, as detailed in the annual report [93]. - The audit committee reviewed the group's audited annual performance and assessed the effectiveness of the company's risk management and internal control systems [196]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value [193]. Shareholder Information - As of December 31, 2019, major shareholders include Wu Yongkang with 278,256,000 shares (approximately 41.5% ownership) and Chen Shujuan with 278,256,000 shares (approximately 41.5% ownership) [126]. - The company reported that sales to the top five customers accounted for 61.0% of total sales for the year, down from 64.2% in 2018, with the largest customer contributing 26.2% [142]. - The total procurement amount from the top five suppliers represented 28.5% of total procurement, slightly up from 28.2% in 2018, with the largest supplier accounting for 7.6% [142].

覧 BAGUIO Clean Green 碧 瑤 綠 色 集 團 有 限 公 司 Baguio Green Group Limited ( 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ) (Incorporated in the Cayman Islands with limited liability) 股份代號 Stock Code：1397 110011 00 01001110 01000100 010 01001110 010001 Clean Recy ALL PRODUCTION CONSULT INTERIM REPORT 中期報告 2019 目 錄 2 公司資料 3 財務摘要 4 管理層討論及分析 43001110 01000100 綜合損益及其他全面收益表 01001110 C 綜合財務狀況表 01001010 15 綜合權益變動表 簡明綜合現金流量表 01000100 01010011 01 16 01001010 017 015 未經審核中期財務報告附註 01101100 0103516 0101 00100101 獨立審閱報告 01001010 36 其他資料 010011 ...

雞 碧 瑤 綠 色 集 團 有 限 公 司 Baguio Green Group Limited ( 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ) (Incorporated in the Cayman Islands with limited liability) 股份代號 Stock Code：1397 2018年報 ANNUAL REPORT in Oreen 目錄 公司資料 2 主席報告 3 管理層討論及分析 5 董事履歷詳情 12 董事會報告 15 企業管治報告 25 環境、社會及管治報告 36 獨立核數師報告 65 綜合損益及其他全面收益表 70 綜合財務狀況表 71 綜合權益變動表 72 綜合現金流量表 73 綜合財務報表附註 74 五年財務概要 128 公司資料 執行董事 吳永康先生 吳玉群女士 吳永全先生 梁淑萍女士 陳淑娟女士 核數師 畢馬威會計師事務所 | --- | --- | |---------------------|------------------------------------------------| | | | | 張笑珍女士 | 香港主要營業地點 ...