Financial Performance - The Group's revenue for the year ended 30 September 2020 was approximately HK$543,968,000, a decrease of approximately 21.4% compared to HK$691,750,000 in 2019[10]. - The net profit for the year ended 30 September 2020 was approximately HK$56,018,000, representing a decrease of approximately 15.2% from HK$66,035,000 in 2019[10]. - The gross profit for the year ended 30 September 2020 was approximately HK$190,653,000, down approximately 16.5% from HK$228,260,000 in 2019[20]. - The decrease in revenue was primarily due to the impact of COVID-19 and the disposal of subsidiaries in the previous year[19]. - Selling and distribution costs decreased to approximately HK$47,193,000 for the year ended 30 September 2020, down about 24.2% from approximately HK$62,248,000 in 2019[21]. - Administrative expenses were approximately HK$78,186,000 for the year ended 30 September 2020, a decrease of about 24.0% from approximately HK$102,886,000 in the previous year[21]. - The Group reported a net profit of approximately HK$56,018,000 for the year ended 30 September 2020, compared to approximately HK$66,035,000 for the year ended 30 September 2019[28]. Dividends and Shareholder Communication - The Board has recommended a final dividend of HK5.2 cents per ordinary share for the year ended 30 September 2020, unchanged from 2019[11]. - The annual report was presented to shareholders on 23 December 2020[17]. - The Company has adopted a Dividend Policy to allow shareholders to participate in profits while retaining adequate reserves for future growth[94]. - The Board considers various factors, including financial performance and working capital requirements, when declaring dividends[96]. - The Company does not have a pre-determined dividend distribution ratio, and past dividend records may not be indicative of future distributions[96]. Market Outlook and Strategy - The Group's management will continue to monitor market conditions and adjust strategies accordingly[19]. - The Board expects stable sales growth in the medium to long term due to increasing global demand for footwear and environmental adhesive products[33]. - The Group aims to broaden its revenue base by proactively investing in and developing its OEM business[34]. - The Group plans to consider further expansion of its manufacturing facilities to meet customer needs[28]. - The Group plans to continue investing necessary resources to enhance its market share in response to market changes[37]. Risk Management and Corporate Governance - The Company complied with all applicable code provisions of the Corporate Governance Code during the year ended 30 September 2020, except for one deviation related to the "Chairman and Chief Executive" section[49]. - The Board is responsible for the leadership and control of the Group, overseeing its businesses, strategic decisions, and performance[49]. - The Audit Committee held three meetings during the year ended 30 September 2020 to discuss the audit plan and review the Group's financial results for the year and the six months ended 31 March 2020[70]. - The Company has established procedures for handling inside information and is committed to disclosing such information to the public as soon as reasonably practicable[89][92]. - The Group's risk management and internal control procedures aim to safeguard assets against misappropriations and ensure reliable accounting records for financial information[86]. Environmental and Social Responsibility - The Group's environmental management system was accredited with ISO 14001:2015, demonstrating its commitment to sustainable development[107]. - The Group is dedicated to the research and development of products that are both ecologically sound and occupationally safe, promoting the use of environmentally friendly products[107]. - The Group emphasizes the importance of social corporate responsibility by addressing the needs of different stakeholders[200]. - The Group is committed to sustainable development and actively contributes to the community where it operates[200]. - The Group has been involved in educational initiatives in impoverished areas since 2006, including the construction of Youxin Peimiao Dingan Primary School in Teng County, Guangxi[200]. Employee Welfare and Safety - The Group emphasizes the importance of employee health and safety, providing facilities such as an outdoor basketball court and swimming pool to promote a healthy workplace[160][161]. - The Group has established safety policies to prevent accidents and conducts regular safety inspections to identify potential hazards in the workplace[162][163]. - During the year ended September 30, 2020, there were no reported occurrences of fatal accidents, reflecting a commitment to workplace safety[171]. - The Group provides additional benefits beyond legal requirements to support employee welfare and social responsibility[145][147]. - The Group actively recruits employees from diverse backgrounds to enhance corporate culture and maintain competitiveness in the labor market[152]. Compliance and Ethical Standards - The Group did not identify any material noncompliance or breach of relevant laws and regulations regarding child labor and forced labor during the year ended September 30, 2020[180]. - The Group has a zero-tolerance policy for corruption and did not identify any material issues related to corruption during the year ended September 30, 2020[193]. - The Group is committed to product safety management, providing clear instructions and accurate labeling to customers, with no material issues identified in product health and safety during the year ended September 30, 2020[193].
星谦发展(00640) - 2020 - 年度财报