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进腾集团(02011) - 2019 - 年度财报
2020-05-08 08:30
[Company Information](index=2&type=section&id=Company%20Information) [Company Basic Information](index=2&type=section&id=Company%20Information) This section provides basic company information, including board and committee member changes and key corporate details - On **November 19, 2019**, significant changes occurred in the company's Board of Directors and its committees (Audit, Nomination, Remuneration), with **Mr. Zhuang Weidong** appointed as **Chairman** and **Mr. Qiu Chuanzhi** as **President**[3](index=3&type=chunk)[4](index=4&type=chunk) [Financial Highlights](index=3&type=section&id=Financial%20Highlights) [Five-Year Financial Summary](index=3&type=section&id=Five-Year%20Financial%20Summary) This report presents key five-year financial data, highlighting a decline in gross profit margin and shareholder equity, alongside an increase in the gearing ratio in 2019 Five-Year Financial Summary | Metric | 2019 | 2018 | 2017 | 2016 (Restated) | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Gross Profit Margin (%) | 25.7 | 32.4 | 31.2 | 28.9 | 30.2 | | Operating Loss/Profit Margin (%) | -19.1 | -14.6 | -4.5 | 27.2 | 4.5 | | Net Loss/Profit Margin (%) | -21.5 | -16.8 | -24.4 | 15.1 | 2.6 | | Return on Equity (%) | -20.4 | -12.5 | -14.4 | 7.3 | 1.4 | | Total Assets (HKD Thousands) | 338,348 | 330,454 | 380,180 | 405,760 | 368,931 | | Total Equity Attributable to Shareholders (HKD Thousands) | 216,657 | 264,730 | 314,083 | 298,523 | 290,857 | | Gearing Ratio (%) | 29.3 | 12.9 | 11.4 | 21.6 | 15.2 | [Consolidated Statement of Profit or Loss Summary](index=6&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20Summary) In 2019, revenue from continuing operations increased, but gross profit declined, leading to an expanded operating loss and a larger loss attributable to equity holders Consolidated Statement of Profit or Loss Summary | Item (HKD Thousands) | 2019 | 2018 | | :--- | :--- | :--- | | **Continuing Operations** | | | | Revenue | 205,796 | 197,532 | | Gross Profit | 52,932 | 63,919 | | Operating Loss | (39,255) | (28,872) | | Loss Before Tax | (43,000) | (28,872) | | **Loss for the Year** | (44,164) | (29,946) | | Loss Attributable to Equity Holders of the Company | (44,180) | (33,177) | [Consolidated Statement of Financial Position Summary](index=7&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20Summary) As of 2019 year-end, total assets slightly increased, non-current assets rose due to right-of-use assets, while current assets and net assets declined Consolidated Statement of Financial Position Summary | Item (HKD Thousands) | December 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 142,345 | 83,397 | | Current Assets | 196,003 | 247,057 | | **Total Assets** | **338,348** | **330,454** | | **Liabilities and Equity** | | | | Current Liabilities | 60,671 | 41,396 | | Non-current Liabilities | 38,381 | 1,124 | | **Net Assets** | **239,296** | **287,934** | | Total Equity Attributable to Equity Holders of the Company | 216,657 | 264,730 | [Chairman's Statement](index=8&type=section&id=Chairman%27s%20Statement) [Chairman's Statement](index=8&type=section&id=Chairman%27s%20Statement) The Chairman's Statement reviews 2019, highlighting a change in control, continued focus on the zipper business with steady revenue growth despite challenges, and future plans for cost control and strategic investments - In **July 2019**, the company's control changed, with new major shareholders intending to continue and develop the existing zipper business while exploring other business opportunities[21](index=21&type=chunk) - Facing macro challenges such as the US-China trade dispute and the **COVID-19** pandemic, the Group focused on strengthening marketing and product innovation, with zipper business revenue reaching approximately **HKD 205.8 million** in **2019**[22](index=22&type=chunk) - Looking ahead, the Group will continue to seek attractive investment and acquisition opportunities to enhance profitability and shareholder value, remaining open to exploring new business ventures[22](index=22&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Performance Overview](index=10&type=section&id=Financial%20Highlights) In 2019, the Group's revenue increased, but loss before tax expanded significantly due to lower gross profit, fair value losses, and reduced foreign exchange gains, partially offset by a prior-year impairment reversal Financial Performance Overview | Financial Metric | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | HKD 205.8 million | HKD 197.5 million | | Loss Before Tax | HKD 43 million | HKD 28.87 million | - Loss before tax increased by **HKD 14.13 million** year-on-year, primarily attributable to: - Decrease in gross profit of approximately **HKD 11 million** - Increase in fair value loss on financial assets of approximately **HKD 22.3 million** - Decrease in foreign exchange gains of approximately **HKD 6.16 million** - New interest expense on lease liabilities of approximately **HKD 3.75 million** - Dividend income of **HKD 9.3 million** in the prior year period, which was zero in the current year - These negative impacts were partially offset by an impairment loss of **HKD 45 million** on other receivables in the prior year period[27](index=27&type=chunk) [Operational Review](index=11&type=section&id=Operational%20Review) This section reviews 2019 operations, noting a revenue increase driven by overseas sales, but a decline in gross profit margin due to increased manufacturing costs, leading to an expanded loss attributable to shareholders Revenue by Product Category (HKD Millions) | Product Category | 2019 | % of Total | 2018 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Zippers and Sliders | 202.22 | 98.3 | 192.97 | 97.7 | | Others | 3.58 | 1.7 | 4.56 | 2.3 | | **Total** | **205.80** | **100.0** | **197.53** | **100.0** | Revenue by Geographical Location (HKD Millions) | Region | 2019 | % of Total | 2018 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 183.00 | 88.9 | 181.70 | 92.0 | | Overseas | 22.80 | 11.1 | 15.83 | 8.0 | | **Total Revenue** | **205.80** | **100.0** | **197.53** | **100.0** | - Gross profit decreased by **17.2%** from **HKD 63.92 million** to **HKD 52.93 million**, with gross profit margin declining from **32.4%** to **25.7%** - This was primarily due to increased fixed manufacturing overheads and labor costs following the commencement of production at Kaiyi (Guangdong) Jingmen branch in **April 2019**[35](index=35&type=chunk) - Loss attributable to equity holders of the company was approximately **HKD 44.18 million**, an increase of **33.2%** from the **HKD 33.18 million** loss in **2018**[43](index=43&type=chunk) [Financial Position Analysis](index=13&type=section&id=Financial%20Position%20Analysis) This section analyzes the Group's financial position, noting partial fund redemption, a significant increase in inventory, improved trade receivables turnover, initial recognition of right-of-use assets and lease liabilities, and a zero gearing ratio at year-end - The Group redeemed part of its fund investments in **2019**, reducing the carrying value of these financial assets to **HKD 23.58 million** at year-end (end of **2018**: **HKD 102 million**), and recording a fair value change loss of **HKD 23.6 million** for the year - Subsequent to the reporting period, the remaining fund interests were also redeemed[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) - Inventory significantly increased by **40.2%** from **HKD 24.55 million** to **HKD 34.43 million**, primarily due to increased raw material reserves to meet **2020** sales orders - Average inventory turnover days increased from **66 days** to **70 days**[50](index=50&type=chunk)[51](index=51&type=chunk) - Due to **HKD 45 million** in sales consideration from the **2017** disposal of a subsidiary remaining uncollected, the Group fully provided for impairment loss in **2018** and obtained a favorable judgment in **2019**, but is still evaluating subsequent recovery actions[55](index=55&type=chunk)[56](index=56&type=chunk)[58](index=58&type=chunk) - Due to the application of HKFRS 16, right-of-use assets of approximately **HKD 52.04 million** and lease liabilities of approximately **HKD 53.58 million** were recognized at the end of **2019**[61](index=61&type=chunk) [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) In 2019, operating cash flow turned negative, while investing cash flow was positive due to fund redemptions, leading to increased cash and cash equivalents at year-end with zero bank borrowings Cash Flow Summary (HKD Millions) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash (Used in)/From Operating Activities | (1.37) | 6.25 | | Net Cash From/(Used in) Investing Activities | 34.61 | (17.08) | | Net Cash Used in Financing Activities | (22.09) | – | | **Cash and Cash Equivalents at End of Period** | **91.17** | **78.59** | - As of **December 31, 2019**, the Group had no bank borrowings or bank facilities, and its gearing ratio (total interest-bearing borrowings/total equity) was **zero**[65](index=65&type=chunk) [Outlook](index=21&type=section&id=Outlook) The Group anticipates severe challenges in the global business environment, particularly from the US-China trade war and COVID-19, impacting 2020 performance, but plans to enhance brand, integrate capacity, and strengthen management to navigate these challenges - The **COVID-19** pandemic led to insufficient operation in downstream industries, decreased new orders, and disrupted supply chains and logistics, placing significant pressure on the company's zipper business operating performance in the first half of **2020**[93](index=93&type=chunk) - The company will adopt four key measures to address challenges: - Enhance brand image and increase market development investment - Integrate production capacity, improve automation, and control costs - Strengthen talent management and improve operational efficiency - Strengthen cash flow management[94](index=94&type=chunk) [Corporate Governance Report](index=21&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Practices and Board of Directors](index=22&type=section&id=Corporate%20Governance%20Practices) The company strives for high corporate governance, largely complying with the code but noting deviations regarding the Chairman/CEO role and a non-executive director's term, with an eight-member board overseeing company leadership - The company complied with all code provisions of the Corporate Governance Code, with some deviations[99](index=99&type=chunk) - Deviations include: 1. From **January 1, 2019**, to **November 19, 2019**, the Chairman and Chief Executive Officer were the same person (**Mr. Wu Hangzheng**), deviating from Code Provision A.2.1 2. The appointment of Non-executive Director **Ms. Lin Ping** had no specific term, deviating from Code Provision A.4.1[106](index=106&type=chunk)[111](index=111&type=chunk) - The Board of Directors currently comprises **eight members**, including **four executive directors**, **one non-executive director**, and **three independent non-executive directors**, meeting the Listing Rules' requirements for the number and professional qualifications of independent non-executive directors[101](index=101&type=chunk)[109](index=109&type=chunk) [Board Committees](index=26&type=section&id=Board%20Committees) The Board operates with Audit, Remuneration, and Nomination Committees, primarily composed of independent non-executive directors, which held meetings to fulfill their duties, and the company has adopted diversity and dividend policies - The Audit Committee comprises **three independent non-executive directors**, held **three meetings** during the year, and reviewed significant matters including annual and interim financial results and internal control systems[134](index=134&type=chunk) - The Remuneration Committee comprises **three independent non-executive directors**, held **two meetings** during the year, and reviewed remuneration policies and determined executive directors' remuneration[140](index=140&type=chunk) - The Nomination Committee comprises **two executive directors** and **three independent non-executive directors**, held **two meetings** during the year, and reviewed the Board's structure, size, and composition[144](index=144&type=chunk) [Internal Control and Shareholders' Rights](index=30&type=section&id=Internal%20Control%20and%20Shareholders%27%20Rights) The Board ensures internal control and risk management through external reviews, and the company has established clear shareholder rights mechanisms, including EGM procedures and inquiry channels, fostering effective communication - The Group has not established an internal audit department but appoints an external independent consultant to conduct annual reviews of its internal control system - The Board believes that as of the end of **2019**, the Group's risk management and internal control systems were implemented and effective[157](index=157&type=chunk)[160](index=160&type=chunk) - Shareholders holding not less than **one-tenth** of the company's paid-up capital have the right to request the Board to convene an extraordinary general meeting[164](index=164&type=chunk) [Environmental, Social and Governance Report](index=32&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [Environmental Protection](index=33&type=section&id=Environmental%20Protection) The Group manages environmental matters according to ISO14001 and national regulations, focusing on waste reduction, energy saving, compliant emissions, wastewater reuse, and promoting green practices and reduced packaging - The Group strictly handles hazardous waste (e.g., waste mineral oil, dyes) and non-hazardous waste (e.g., waste packaging, domestic waste), and holds a "Pollutant Discharge Permit" to ensure compliant exhaust gas emissions[178](index=178&type=chunk)[179](index=179&type=chunk) - By installing wastewater treatment and reclaimed water reuse systems, over **10,000 tonnes** of wastewater were purified during the reporting period, with treated wastewater reusable for dyeing, washing, and other processes[181](index=181&type=chunk) Key Resource Consumption and Emission Data for 2019 | Category | Unit | Total Amount | Intensity (per HKD Million Revenue) | | :--- | :--- | :--- | :--- | | **Greenhouse Gas Emissions** | Tonnes of CO2e | 10,749 | 53.1 | | **Wastewater** | Tonnes | 66,552 | 323 | | **Hazardous Waste** | Tonnes | 7.5 | 0.03 | | **Non-hazardous Waste** | Tonnes | 126 | 6.1 | | **Electricity Consumption** | kWh | 12,437,223 | 50,562 | | **Water Consumption** | Tonnes | 339,611 | 1,650 | [Employment and Labor Practices](index=37&type=section&id=Employment%20and%20Labor%20Practices) The Group adheres to labor laws, ensuring fair employment, prohibiting child/forced labor, prioritizing employee health and safety through training and drills, and providing professional development for its 816 full-time employees - As of the end of **2019**, the Group had **816 full-time employees**, an increase from **622** in **2018** - Employees are primarily located in **Mainland China (99%)**, with the **31-40 age group** being the largest (**48%**)[195](index=195&type=chunk) - The Group highly values occupational health and safety, implementing a **three-tier safety training mechanism** and regularly conducting fire drills - In **2019**, there were **17 work-related injuries**, resulting in **282 lost workdays**, with **no work-related fatalities**[197](index=197&type=chunk)[199](index=199&type=chunk)[201](index=201&type=chunk) - The Group strictly adheres to labor standards, prohibiting child and forced labor, and safeguarding employee rights through its "Grievance Management Procedure"[204](index=204&type=chunk) [Operating Practices](index=42&type=section&id=Operating%20Practices) The Group manages operating practices through supplier evaluation, prioritizing local sourcing, ensuring product quality with ISO 9001 certification and a complaint mechanism, protecting privacy, and implementing an anti-fraud system - The Group has established a comprehensive supply chain management system, evaluating suppliers on quality, price, delivery time, and environmental measures - All suppliers are located in **Mainland China**[208](index=208&type=chunk)[209](index=209&type=chunk) - The Group's production bases are certified with **ISO 9001**, **OEKO-TEX® STANDARD 100**, and **TQP** quality systems - In **2019**, **41 customer complaints** were received, a reduction from **70** in **2018**, with no product recalls due to health and safety issues[210](index=210&type=chunk) - The Group promotes integrity in operations, establishing a whistleblowing system and reward mechanism, and signing integrity agreements with employees and partners to prevent corruption and bribery - No related cases were found in **2019**[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) [Community Investment](index=44&type=section&id=Community%20Investment) The Group actively fulfills social responsibilities through the "Kaiyi Charity Foundation," providing employee assistance, consistently donating to vulnerable groups, supporting youth, and encouraging community involvement - The Group established the "**Kaiyi Charity Foundation**" to provide assistance to employees facing financial difficulties (e.g., children's education, critical illness, natural disasters)[219](index=219&type=chunk) [Biographies of Directors and Senior Management](index=44&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) [Biographies of Directors and Senior Management](index=44&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) This section details the personal biographies of the company's executive, non-executive, and independent non-executive directors, along with senior management, covering their professional backgrounds and other listed company roles - Detailed biographies are provided for **four executive directors**, including Chairman **Mr. Zhuang Weidong** and President **Mr. Qiu Chuanzhi**, one non-executive director, and three independent non-executive directors[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk) - The backgrounds and responsibilities of senior management, including Chief Financial Officer **Mr. Qiu Zhichao** and zipper business founders **Mr. Xu Xipeng** and **Mr. Xu Xinan**, are introduced[231](index=231&type=chunk)[232](index=232&type=chunk) [Directors' Report](index=47&type=section&id=Directors%27%20Report) [Business and Financial Review](index=48&type=section&id=Business%20and%20Financial%20Review) The Directors' Report outlines the Group's 2019 zipper business, noting key customer and supplier concentrations, no final dividend recommendation but a special dividend paid in 2020, and distributable reserves of HKD 84.6 million - The Group's principal business is the design, manufacture, and sale of zippers and other garment accessories[235](index=235&type=chunk) Key Customer and Supplier Concentration | Category | % of Total Turnover/Purchases (2019) | | :--- | :--- | | Largest Customer | 4.8% | | Top Five Customers | 16.1% | | Largest Supplier | 13.1% | | Top Five Suppliers | 33.5% | - The Board does not recommend a final dividend for **2019** - A special dividend of **HKD 0.075 per share** was paid on **March 3, 2020**[240](index=240&type=chunk) [Directors and Share Capital Matters](index=50&type=section&id=Directors%20and%20Share%20Capital%20Matters) This section details director changes, share interests, and capital structure, noting significant board changes in November 2019, directors' controlled shareholdings, no listed securities transactions, and the restoration of public float to over 25% by year-end - Multiple changes occurred in the Board of Directors during the year and subsequent to the reporting period, including the appointment and resignation of several directors[255](index=255&type=chunk) Directors' Interests in Company Shares (Long Position) (December 31, 2019) | Director Name | Type of Interest | Number of Shares | Approximate % of Interest | | :--- | :--- | :--- | :--- | | Qiu Chuanzhi | Interest in controlled corporation | 133,706,331 | 28.77% | | Zhuang Weidong | Interest in controlled corporation | 130,897,663 | 28.16% | | Lin Ping | Interest in controlled corporation | 83,942,606 | 18.06% | | Mai Rongbin | Interest in controlled corporation | 83,942,606 | 18.06% | - After the offer closed on **September 20, 2019**, the company's public float decreased to approximately **13.03%**, below the **25%** required by the Listing Rules - It was subsequently restored to **25%** through a placing completed on **December 19, 2019**[308](index=308&type=chunk)[309](index=309&type=chunk) [Independent Auditor's Report](index=57&type=section&id=Independent%20Auditor%27s%20Report) [Independent Auditor's Report](index=57&type=section&id=Independent%20Auditor%27s%20Report) The auditor issued an unmodified opinion on the 2019 consolidated financial statements, highlighting key audit matters including inventory valuation, fair value measurement of financial assets, and impairment assessment of non-financial assets - The auditor issued an **unmodified opinion** on the consolidated financial statements[315](index=315&type=chunk) - Key audit matters include: - **Inventory Valuation**: Due to the significant net carrying amount of inventory (**HKD 34.43 million**) and the significant judgment involved in determining the required provision level - **Valuation of Financial Assets at Fair Value Through Profit or Loss**: Refers to unlisted investment funds, where fair value determination involves significant judgment - **Impairment Assessment of Non-financial Assets**: Due to the decline in gross profit margin of the zipper business, there may be indications of impairment, and the assessment involves significant judgment regarding future cash flows[317](index=317&type=chunk)[319](index=319&type=chunk)[322](index=322&type=chunk)[336](index=336&type=chunk) [Consolidated Financial Statements](index=64&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss](index=65&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) In 2019, the Group reported HKD 206 million in revenue and HKD 52.93 million in gross profit, but due to other losses and expenses, the loss before tax was HKD 43 million, resulting in a HKD 44.18 million loss attributable to equity holders Key Data from Consolidated Statement of Profit or Loss for the Year Ended 2019 (HKD Thousands) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | 205,796 | 197,532 | | Gross Profit | 52,932 | 63,919 | | Loss Before Tax | (43,000) | (28,872) | | Loss for the Year | (44,164) | (29,946) | | Loss Attributable to Equity Holders of the Company | (44,180) | (33,177) | | Basic Loss Per Share (HK cents) | (9.5) | (7.1) | [Consolidated Statement of Financial Position](index=67&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2019, the Group's total assets were HKD 338 million, with net assets at HKD 239 million, and significant changes in non-current assets and liabilities due to new lease accounting standards Key Data from Consolidated Statement of Financial Position as of December 31, 2019 (HKD Thousands) | Item | 2019 | 2018 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 142,345 | 83,397 | | Current Assets | 196,003 | 247,057 | | **Total Assets** | **338,348** | **330,454** | | **Liabilities and Equity** | | | | Current Liabilities | 60,671 | 41,396 | | Non-current Liabilities | 38,381 | 1,124 | | **Net Assets** | **239,296** | **287,934** | | **Total Equity** | **239,296** | **287,934** | [Consolidated Cash Flow Statement](index=70&type=section&id=Consolidated%20Cash%20Flow%20Statement) In 2019, operating activities resulted in a net cash outflow, while investing activities generated a net inflow from fund redemptions, leading to a net increase in cash and cash equivalents to HKD 91.17 million at year-end Consolidated Cash Flow Statement for the Year Ended 2019 (HKD Thousands) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash (Used in)/From Operating Activities | (1,372) | 6,247 | | Net Cash From/(Used in) Investing Activities | 34,607 | (17,082) | | Net Cash Used in Financing Activities | (22,086) | – | | Net Increase/(Decrease) in Cash and Cash Equivalents | 11,149 | (10,835) | | Cash and Cash Equivalents at December 31 | 91,174 | 78,587 | [Notes to the Consolidated Financial Statements](index=71&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [Changes in Accounting Policies](index=72&type=section&id=2.%20Adoption%20of%20Hong%20Kong%20Financial%20Reporting%20Standards) This year, the Group adopted new HKFRS, most notably HKFRS 16 "Leases," recognizing HKD 69.2 million in right-of-use assets and lease liabilities on January 1, 2019, significantly impacting financial statement presentation - The Group adopted **HKFRS 16 "Leases"** effective **January 1, 2019**, bringing significant changes to lease accounting[373](index=373&type=chunk) Impact of Adopting HKFRS 16 on the Statement of Financial Position as of January 1, 2019 (HKD Thousands) | Item | Impact Amount | | :--- | :--- | | Recognition of Right-of-Use Assets | +69,204 | | Recognition of Lease Liabilities (Non-current) | +53,581 | | Recognition of Lease Liabilities (Current) | +15,623 | [Segment Reporting](index=95&type=section&id=6.%20Segment%20Reporting) The Group manages its business through Mainland China and Overseas zipper segments, with Mainland China contributing most revenue and profit in 2019, while overseas revenue grew significantly Segment Results for 2019 (HKD Thousands) | Item | Zippers - Mainland China | Zippers - Overseas | Total | | :--- | :--- | :--- | :--- | | Revenue from External Customers | 182,992 | 22,804 | 205,796 | | Reportable Segment Profit | 2,318 | 594 | 2,912 | | Reportable Segment Assets | 235,873 | 13,975 | 249,848 | [Significant Related Party Transactions](index=126&type=section&id=29.%20Significant%20Related%20Party%20Transactions) The Group engages in ongoing related party transactions, primarily property and plant leases, totaling HKD 14.75 million in rental payments for 2019, and also discloses key management personnel remuneration - The Group has multiple property lease agreements with senior management **Mr. Xu Xipeng** and **Mr. Xu Xinan** (or their associated companies), constituting continuing connected transactions[631](index=631&type=chunk)[632](index=632&type=chunk)[633](index=633&type=chunk) - For the year ended **2019**, the total remuneration of key management personnel (including short-term benefits and retirement scheme contributions) was **HKD 10.903 million**[635](index=635&type=chunk) [Events After Reporting Period](index=134&type=section&id=32.%20Events%20After%20Reporting%20Period) Post-reporting period events include lease renewals, a special dividend payment of HKD 34.86 million, and the redemption of remaining fund investments, with the COVID-19 pandemic's financial impact still being assessed - On **March 3, 2020**, the company paid a special dividend of **HKD 0.075 per share**, totaling approximately **HKD 34.86 million**[666](index=666&type=chunk) - On **March 25, 2020**, the Group redeemed the remaining fund investments, receiving net proceeds of approximately **HKD 24.89 million**[667](index=667&type=chunk) - The **COVID-19** pandemic, which erupted in early **2020**, impacted business activities in China; the Group has resumed production, but its specific financial impact remains uncertain and is expected to be reflected in the **2020** interim and annual financial reports[667](index=667&type=chunk)
进腾集团(02011) - 2019 - 中期财报
2019-09-19 08:44
Financial Performance - For the six months ended June 30, 2019, the company's revenue was approximately HKD 117,469,000, representing a 5.3% increase compared to HKD 111,556,000 for the same period in 2018[8]. - The gross profit for the same period was HKD 38,957,000, a decrease of 5.5% from HKD 41,207,000 in 2018, resulting in a gross margin of 33.2%, down from 36.9%[8]. - The net profit attributable to equity shareholders for the six months was HKD 4,913,000, a significant decline of 62.6% from HKD 13,137,000 in the previous year[8]. - Total revenue for the first half of 2019 was approximately HKD 117,469,000, an increase from HKD 111,556,000 in 2018, representing a growth of 5.4%[19]. - Gross profit for the first half of 2019 was HKD 38,957,000, down from HKD 41,207,000 in 2018, indicating a decrease of 5.4%[21]. - The company's profit before tax decreased significantly to HKD 8,812,000, a decline of 55.7% compared to HKD 19,908,000 in the previous year[75]. - Net profit for the period was HKD 6,346,000, representing a decrease of 59.9% from HKD 15,819,000 in the prior year[75]. - Basic and diluted earnings per share for the company were HKD 1.1, down from HKD 2.8 in the same period last year[75]. - Total comprehensive income for the period was HKD 8,452,000, compared to HKD 12,610,000 in the previous year, reflecting a decrease of 32.5%[77]. Assets and Liabilities - The company's total assets increased by 24.5% to HKD 411,279,000 as of June 30, 2019, compared to HKD 330,454,000 at the end of 2018[8]. - Cash and cash equivalents decreased by 43.6% to HKD 44,287,000 from HKD 78,587,000 in the previous year[8]. - The company's total liabilities to total assets ratio was 27.9% as of June 30, 2019, compared to 12.9% on December 31, 2018, indicating a significant increase in leverage[42]. - The company recorded current assets of approximately HKD 262,280,000 as of June 30, 2019, with a current asset net value of about HKD 194,750,000[43]. - The company reported a net cash outflow from operating activities of approximately HKD 13,280,000 for the six months ending June 30, 2019, an increase from HKD 11,030,000 for the same period in 2018[39]. - The company’s inventory rose to HKD 30,710 thousand from HKD 24,549 thousand, representing a 24.5% increase[79]. - Trade receivables and notes receivable, net of impairment provisions, increased to HKD 75,521,000 as of June 30, 2019, compared to HKD 39,575,000 as of December 31, 2018, representing an increase of 90.5%[11]. Expenses and Costs - Distribution costs rose by 3.4% to approximately HKD 7,370,000 in the first half of 2019, up from HKD 7,130,000 in 2018, consistent with sales growth[22]. - Administrative expenses increased by 23.6% to approximately HKD 26,310,000 in the first half of 2019, compared to HKD 21,290,000 in 2018, primarily due to increased salaries and benefits related to the establishment of a new subsidiary[22]. - The company incurred employee costs of HKD 46,862,000 for the six months ended June 30, 2019, compared to HKD 42,260,000 in the same period of 2018, reflecting an increase of 10.5%[135]. - The company reported a depreciation and amortization expense of HKD 13,931,000 for the six months ended June 30, 2019, compared to HKD 4,681,000 in the same period of 2018, indicating a significant increase[138]. Strategic Initiatives - The company aims to enhance brand image and value, increase market development, and invest in product innovation to improve customer satisfaction[13]. - The company is actively seeking new investment and business opportunities to diversify its existing operations[12]. - The company plans to optimize resource allocation and improve operational efficiency to meet customer demands and increase market share[14]. - The company plans to expand its operations following the acquisition of 70.16% of its shares for a total consideration of HKD 546,852,259.20[50]. Ownership Structure - As of June 30, 2019, the major shareholder, Crocodile Trade Limited, holds 326,089,600 shares, representing approximately 70.16% of the company's equity[53]. - Beijing Zhonghong Hongyi Investment Limited also holds 326,089,600 shares, equivalent to 70.16% of the equity, indicating significant control by related companies[55]. - The ownership structure includes various controlled companies, highlighting a complex network of interests among shareholders[60]. - The significant percentage of shares held by a few entities may impact corporate governance and decision-making processes[60]. Compliance and Governance - The company has maintained compliance with all provisions of the corporate governance code, except for the dual role of the chairman and CEO[69]. - The report indicates no additional disclosures of interests or short positions by directors or key executives as of June 30, 2019[62].
进腾集团(02011) - 2018 - 年度财报
2019-04-25 22:09
Financial Performance - KEE Holdings reported a revenue of HKD 197.53 million for 2018, an increase from HKD 184.73 million in 2017, representing a growth of approximately 9.7%[10] - The gross profit margin improved to 32.4% in 2018, up from 31.2% in 2017, indicating better cost management and pricing strategies[10] - The net profit margin for 2018 was -16.8%, an improvement from -24.4% in 2017, reflecting a reduction in losses[10] - Total revenue for the year ended December 31, 2018, was HKD 197,532,000, an increase of 6.9% from HKD 184,732,000 in 2017[22] - Gross profit for 2018 was HKD 63,919,000, up 10.3% from HKD 57,704,000 in 2017[22] - The net loss from continuing operations for 2018 was HKD 29,946,000, compared to a loss of HKD 13,762,000 in 2017[22] - The loss for the year ended December 31, 2018, was approximately HKD 29.95 million, influenced by a profit of HKD 12.3 million from the zipper business and a loss of HKD 45 million from other receivables[36] - The loss attributable to equity shareholders for 2018 was approximately HKD 33,180,000, a 26.5% reduction compared to HKD 45,130,000 in 2017[54] Assets and Liabilities - Total assets decreased to HKD 330.45 million in 2018 from HKD 405.76 million in 2016, showing a decline of approximately 18.5% over two years[10] - The company's total equity attributable to shareholders was HKD 264.73 million in 2018, down from HKD 314.08 million in 2017, a decrease of about 15.7%[10] - Non-current assets decreased to HKD 83,397,000 in 2018 from HKD 168,051,000 in 2017, reflecting a significant reduction[27] - Current assets increased to HKD 247,057,000 in 2018, up from HKD 212,129,000 in 2017, indicating improved liquidity[27] - Total liabilities decreased to HKD 42,153,000 in 2018 from HKD 86,347,000 in 2017, indicating a reduction in financial obligations[28] Operational Efficiency - The current ratio improved to 6.0 in 2018, compared to 5.0 in 2017, indicating better short-term financial health[10] - The company reported a significant increase in inventory turnover days, which rose to 66 days in 2018 from 62 days in 2017, suggesting a slower inventory movement[10] - KEE Holdings' operating profit margin was -14.6% in 2018, worsening from -4.5% in 2017, indicating challenges in operational efficiency[10] - The average trade receivables turnover days improved from 77 days in 2017 to 74 days in 2018[62] - Trade payables decreased by approximately 31.8% from HKD 11,210,000 in 2017 to HKD 7,640,000 in 2018[69] Market Strategy and Future Plans - The company plans to focus on market expansion and new product development to drive future growth, although specific figures were not disclosed during the call[10] - The company began collaborating with 10 new brands in 2018, including 4 domestic and 6 overseas brands, to expand its market presence[42] - The company is optimistic about future opportunities and is actively seeking attractive investment and acquisition opportunities to enhance profitability[36] - The company plans to cautiously select high-growth potential projects for acquisition without jeopardizing financial stability[36] - The company anticipates stable economic growth in China for 2019, with the textile and apparel industry expected to maintain low-speed growth due to increasing consumer brand awareness[97] Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[101] - The company has established three committees: audit committee, remuneration committee, and nomination committee, to oversee specific aspects of its affairs[132] - The audit committee's main role includes reviewing financial information, internal control systems, and risk management processes[134] - The company emphasizes the importance of continuous professional development for its directors to ensure they remain informed about their responsibilities[116] - The board is responsible for strategic decision-making and monitoring the company's performance, ensuring that all decisions are made in the best interest of the company[114] Environmental Management - The company has established an environmental management policy in accordance with ISO14001 standards to minimize environmental impact[179] - There were no violations of environmental laws regarding emissions, wastewater treatment, or waste disposal during the year[180] - The company has implemented a wastewater recycling system, saving over 100 tons of water daily through improved processes and automation[186] - The company actively monitors wastewater discharge, ensuring compliance with the textile dyeing industry's pollution discharge standards[186] - The company has reduced landfill burden by dehydrating dyeing sludge, thereby decreasing its volume and water content[184]