Financial Performance - Revenue for the year ended December 31, 2018, was HK$336,962,000, a decrease of 2.0% compared to HK$345,004,000 in 2017[9] - Gross profit margin for 2018 was 16.0%, down from 16.9% in 2017, indicating a decline in profitability[9] - Operating loss for the year was HK$4,088,000, compared to an operating profit of HK$536,000 in 2017[9] - Net loss attributable to equity holders of the Company for 2018 was HK$5,230,000, compared to a net loss of HK$1,161,000 in 2017[9] - The Group's gross profit for the year was approximately HK$53,797,000, representing a decrease of 7.6% from approximately HK$58,252,000 in the prior year[28] - The Group's loss for the year increased to approximately HK$5,230,000 from a loss of approximately HK$1,161,000 in the previous year[28] - Other income decreased to approximately HK$3,231,000, down by approximately HK$2,598,000 or 44.6% year-on-year, primarily due to a significant drop in government grants from approximately HK$3,491,000 to approximately HK$610,000[39][40] - The Group's operational costs totaled approximately HK$283,165,000, a decrease of approximately HK$3,587,000 or 1.3% compared to the previous year[37] - The Group's operating costs totaled approximately HK$283,165,000, a decrease of about HK$3,587,000 or 1.3% compared to the same period last year[38] Assets and Liabilities - Current assets as of December 31, 2018, were HK$132,308,000, a decrease from HK$146,965,000 in 2017[14] - Total assets at the end of 2018 were HK$220,900,000, compared to HK$238,975,000 in 2017[14] - The gearing ratio as of December 31, 2018, was 29.7%, an increase from 30.7% in 2017[14] - As of December 31, 2018, the Group held bank balances and cash of approximately HK$73,035,000, down from approximately HK$86,521,000 as of December 31, 2017[54][56] - The Group's gearing ratio as of December 31, 2018, was 29.7%, slightly down from 30.7% as of December 31, 2017[54][56] - As of December 31, 2018, leasehold land and buildings amounted to approximately HK$69,358,000, a decrease from approximately HK$71,709,000 as of December 31, 2017[60] - Trade receivables were approximately HK$5,342,000, down from approximately HK$6,451,000 in the previous year[60] Operational Performance - Container throughput at Hong Kong port decreased by 5.7% compared to the same period last year[30] - Shipment volume for feeder shipping services decreased by 6,837 TEUs or 1.9%, from 358,383 TEUs to 351,546 TEUs[31] - The gross profit for feeder shipping services decreased by approximately HK$2,572,000 or 5.1%, from approximately HK$50,731,000 to approximately HK$48,159,000[31] - Sea freight forwarding agency services recorded a decrease in shipment volume of 5,844 TEUs or 37.0%, from 15,810 TEUs to 9,966 TEUs[34] - The gross profit margin for sea freight forwarding agency services increased from 10.5% to 19.9%[34] Strategic Initiatives - The Group operates mainly in feeder shipping services, carrier owned container services, and sea freight forwarding agency services across multiple regions in China[17] - The Company aims to strengthen relationships with customers and enhance local market understanding through strategic operations in key transportation ports[17] - Future strategies may include market expansion and potential new service offerings to improve financial performance[16] - The Group is exploring opportunities to extend its shipping routes to new ports in southern China, despite previous targeted ports showing unsatisfactory profit margins[52][55] - The Group is rearranging existing shipping routes to increase vessel utilization rates due to concerns over low gross profit margins in regular routes[53][55] - On December 10, 2018, the Group acquired three barges for a total consideration of HK$19,450,000, aimed at reducing costs and improving efficiency in barge services[43][48] - The Group plans to utilize the surplus capacity of the newly acquired barges to provide services to other parties after meeting its own annual requirements[44][48] Environmental, Social, and Governance (ESG) Performance - The Group is committed to improving its Environmental, Social, and Governance (ESG) performance and has complied with relevant environmental laws and regulations[83] - The Group has implemented measures to control air emissions, primarily from the burning of gas oil from vessels, to mitigate air pollution[85] - Total NOx emissions amounted to 729.64 tonnes, SOx emissions were 429.68 tonnes, and PM emissions reached 59.02 tonnes[92] - The group consumed 8,107.11 tonnes of gas oil and 204,177 kWh of electricity during the year ended December 31, 2018[97] - Total greenhouse gas emissions were reported at 28,539.6 tCO2e, with Scope 1 emissions at 28,385.98 tCO2e and Scope 2 emissions at 135.92 tCO2e[101] - The group implemented energy-efficient measures, including using energy-efficient equipment and lighting in offices[96] - At least 90% of staff members have email access, reducing paper consumption through electronic communication[104] - The group has established a green office initiative, actively implementing energy-saving and waste reduction measures[88] - No significant hazardous waste was produced or emitted to water and land during the reporting period[107] - The group aims to minimize the adverse impact of its operations on the environment through various sustainability initiatives[94] - Fuel consumption reduction measures have been put in place to decrease emissions from vessels[95] - The group has committed to regular maintenance and cleaning of vessels to ensure compliance with environmental regulations[91] - Total paper consumption was 3.69 tonnes, and toner consumption was 35 pieces[108] Workforce and Labor Practices - As of December 31, 2018, the Group employed a total of 192 staff, with 134 female and 58 male employees[120] - The workforce breakdown shows 37 employees in Hong Kong and 155 in Mainland China, with 191 full-time and 1 part-time employee[123] - Employees aged 30-50 represent 57.8% of the workforce, while those under 30 account for 31.3%[123] - The Group encourages employee development through diversified on-the-job training and continuing education programs[131] - The Group has established a comprehensive development plan to enable employees to reach their full potential[130] - The Group prohibits the use of child and forced labor across all units and suppliers, maintaining compliance with relevant regulations[133] - The Group has a zero-tolerance policy towards child labor and forced labor, with no violations reported in compliance with relevant regulations[135] - The Group provides diverse on-the-job training based on employee positions and expertise, encouraging continuous education related to their work[136] - The Group adheres to high standards of health and safety in workplace operations, complying with local regulations in Hong Kong and the PRC[140] Governance and Compliance - The Group has implemented a whistle-blowing policy to report fraud and corruption, ensuring clear channels for reporting suspected irregularities[149] - The Group is committed to maintaining high integrity standards in business operations, following relevant laws and regulations in both the PRC and Hong Kong[148] - The company has established anti-corruption policies and procedures to address bribery, extortion, fraud, and money laundering[171] - There were no concluded legal cases regarding corrupt practices against the Group or its employees during the year ended December 31, 2018[150] - The company complies with relevant laws and regulations impacting employment practices, including anti-discrimination policies[166] - The company has a framework for monitoring and reviewing employment practices to ensure ethical labor standards[171] Management and Leadership - Mr. Lau Tak Fung Wallace has been the CEO since March 3, 2016, overseeing corporate strategies and business development[179] - Mr. Lau Tak Kee Henry, appointed as an executive director on March 3, 2016, is responsible for corporate and sales strategies, as well as freight forwarding and IT support services[185] - Madam Tong Hung Sum has been a non-executive director since March 3, 2016, advising on overall strategic planning without participating in daily operations[187] - Mr. Lo Wan Sing Vincent, an independent non-executive director since June 10, 2016, has over 30 years of experience in jewellery and property investment[195] - Mr. Lam Lo, appointed as an independent non-executive director on June 10, 2016, has over 18 years of experience in knitwear and garment industries[198] - The company has a strong management team with diverse backgrounds in business administration and strategic planning[182][186] - The board includes members with significant political and business experience, enhancing the company's strategic direction[180][199] - The company is focused on implementing operational plans and overseeing investment activities to drive growth[184][185] - The management team is actively involved in the day-to-day operations, ensuring effective execution of business strategies[182][186] - The company aims to leverage its leadership's expertise to expand its market presence and enhance operational efficiency[184][199]