Financial Performance - In 2019, the company's sales amounted to HKD 690,896,000, a decrease of 15.2% compared to HKD 814,836,000 in 2018[27] - The gross profit for 2019 was HKD 114,823,000, down 16.8% from HKD 137,933,000 in 2018, resulting in a gross margin of 16.6% compared to 16.9% in the previous year[27] - The total value of contracts signed in 2019 was HKD 588,523,000, a reduction of 30.9% from HKD 852,161,000 in 2018[27] - Other income and gains totaled HKD 14,481,000 in 2019, a decrease of 12.1% from HKD 16,476,000 in 2018[28] - The company reported a loss attributable to owners of HKD 43,413,000 in 2019, compared to a profit of HKD 19,210,000 in 2018[34] - The basic loss per share for 2019 was HKD 0.1887, compared to a basic earnings per share of HKD 0.0835 in 2018[35] - The net profit margin for 2019 was approximately -6.7%, a decline from 2.4% in 2018[46] - The return on equity for 2019 was approximately -10.4%, down from 4.1% in 2018[47] Expenses and Liabilities - Administrative expenses increased by 16.7% to HKD 136,688,000 in 2019, up from HKD 117,158,000 in 2018, primarily due to increased employee costs and higher operational expenses[29] - The net financing expenses for 2019 were HKD 7,056,000, compared to HKD 4,696,000 in 2018, with total financing expenses rising by 36.6% to HKD 8,635,000[31] - The net asset liability ratio increased to approximately 34.6% as of December 31, 2019, compared to 27.8% in 2018[45] - As of December 31, 2019, the group had contingent liabilities totaling HKD 10,281,000, up from HKD 4,631,000 in 2018[50] Business Operations - In 2019, the group's overall business decreased by 15.2% compared to 2018, with equipment sales dropping by 16.3%[38] - The sales of measuring instruments fell by 38.5% in 2019, primarily due to shipping delays[38] - The group completed the sale of a 49% stake in Mitutoyo Leeport Metrology Corporation for HKD 100,000,000 in January 2020[42] - The group anticipates challenges in 2020 but sees opportunities in infrastructure investments by the Chinese government[41] Shareholder Information - The board did not recommend any final dividend for the year ended December 31, 2019, but proposed a special dividend of HKD 0.025 per share for the year ending December 31, 2020[36] - The company did not recommend any dividend payment for the fiscal year ending December 31, 2019[73] - The company's dividend policy does not have a predetermined payout ratio and is subject to the board's discretion based on various financial and operational factors[153] - The board will review the dividend policy periodically and can update it as deemed necessary[156] Corporate Governance - The company confirmed compliance with the corporate governance code as of December 31, 2019[136] - The audit committee reviewed the accounting principles and practices adopted by the group and discussed risk management and internal control systems[125] - The company has adopted the standard code for securities transactions by directors and confirmed compliance for the entire year[137] - The board consists of seven members, including three independent non-executive directors, ensuring a diverse and balanced governance structure[152] - The company has established a framework for granting options, requiring independent non-executive director approval for options granted to major shareholders or directors exceeding certain thresholds[97] Risk Management - The company has a risk management system in place to identify and manage significant risks that could adversely affect its performance[76] - The company confirmed that there are no significant uncertainties that could severely impact its ability to continue as a going concern[169] - The board of directors has reviewed the effectiveness of the risk management and internal control systems as of December 31, 2019, and is satisfied with the results[173] Environmental and Social Responsibility - Total electricity consumption for the year was 512,865 kWh, a decrease from 573,911 kWh in the previous year, resulting in a reduction of CO2 emissions from 310 tons to 277 tons[187] - Water consumption decreased from 1,747 cubic meters to 1,599 cubic meters, with CO2 emissions from water usage also reduced from 0.7 tons to 0.6 tons[187] - Paper consumption decreased from 4,637 kg to 3,374 kg, leading to a reduction in CO2 emissions from paper usage from 4.3 tons to 3.1 tons[187] - The company has implemented an eco-friendly lighting and air conditioning management system to ensure energy efficiency in its offices[189] - A paperless data storage system has been established, allowing employees to store and retrieve electronic documents, reducing paper usage[189] - The company has set up waste recycling bins in offices to collect recyclable materials, contributing to waste reduction efforts[190] Employee and Operational Practices - The company has established a defined contribution retirement plan for eligible employees in Hong Kong, with a contribution rate of 5% of salary[128] - Employee training programs are regularly organized to enhance skills related to teamwork, leadership, and technical expertise[197] - The company maintains a supplier evaluation system to ensure the sustainability and compliance of its supply chain[200] - The company encourages customers to adopt environmentally responsible practices, offering special maintenance services to extend the lifespan of products[191]
力丰(集团)(00387) - 2019 - 年度财报