Financial Performance - In 2019, the company achieved significant improvements in operating profit and net profit, marking a milestone in long-term success and profitability [27]. - The company reported a revenue of 1,769,852 in 2019, showing a consistent growth trend from previous years [19]. - The company's total revenue for the year ended December 31, 2019, decreased by 2.8% to $1,544,800,000, compared to $1,588,600,000 in 2018 [35]. - The profit before tax for 2019 was $100.04 million, up from $66.31 million in 2018, indicating a significant increase of approximately 50.93% [195]. - The net profit for the year was $95.92 million, compared to $62.23 million in 2018, marking an increase of around 54.25% [195]. - Basic earnings per share for the parent company shareholders was $0.121 in 2019, compared to $0.083 in 2018, representing a growth of approximately 45.78% [195]. - Total comprehensive income for the year was $97.48 million, up from $62.31 million in 2018, which is an increase of about 56.43% [195]. - Gross profit increased to $293.61 million in 2019 from $277.12 million in 2018, reflecting a growth of about 5.96% [195]. - The company’s total liabilities decreased to $1,251.22 million in 2019 from $1,311.46 million in 2018, representing a reduction of about 4.59% [195]. - The company reported a cash and cash equivalents balance of $68,061,000, up from $61,328,000, indicating an increase of 11.3% [196]. Revenue and Market Distribution - The company's revenue distribution by region in 2019 was as follows: North America 51.2%, Europe 27.6%, Asia (including China) 12.1%, and others 6.3% [16]. - The contribution of fashion footwear to total revenue increased to 38.0% in 2019, up from 36.2% in 2018 [35]. - The largest customer accounted for approximately 24.7% of total revenue, while the top five customers contributed about 63.2% [184]. Manufacturing and Operational Strategy - The company plans to further diversify its manufacturing base from China to Southeast Asia, with significant progress in expanding new manufacturing facilities in Vietnam [28]. - The company will focus on maintaining operational stability in 2020, with expected shipment volume and average selling price influenced by the external environment, including the impact of COVID-19 [40]. - 70% of the company's manufacturing capacity is located outside of mainland China, with a labor return rate of over 95% after the Lunar New Year holiday [40]. - The company plans to expand its manufacturing footprint in Southeast Asia by adding a new location in Indonesia in 2020, as part of its strategy to improve profit margins [41]. Corporate Governance - The company has maintained compliance with the corporate governance code, except for deviation from code provision B.1.5 [84]. - The governance committee focuses on compliance, risk management, investor relations, and corporate social responsibility [83]. - The board consists predominantly of independent non-executive directors, providing strong independent elements for effective judgment [91]. - The company has established a whistleblowing policy to ensure transparency and accountability [83]. - The board has a clear written scope of authority and responsibilities for each committee to ensure effective governance [85]. Environmental and Social Responsibility - The company emphasizes corporate social responsibility and sustainable development in its operations [54]. - The company aims to enhance resource utilization efficiency to minimize environmental impact [54]. - Total hazardous waste generated was 434.2 tons, with a density of 0.0073 kg per pair of shoes [56]. - The company has established a waste management system to ensure proper handling and reduction of waste pollution [57]. - Community investment initiatives include tree planting activities and donations to local schools in Vietnam and Bangladesh [77]. Employee Development and Welfare - The company continues to invest in employee training and development to enhance skills and productivity, which is crucial for its growth [41]. - The company provides regular health checks and emergency training for employees, along with various welfare programs such as free vision tests and scholarships for outstanding employees' children [68]. - The company promotes a safe working environment by prohibiting the storage of chemicals in workshops and conducting regular safety drills [69]. Dividend Policy - The board has proposed a final dividend of HKD 0.45, resulting in a total dividend of HKD 0.85 for the year 2019 [42]. - The company has adopted a dividend policy aiming for a payout ratio of 70% of annual profits, ensuring stable and sustainable dividends while maintaining sufficient financial resources for business growth [158]. Risk Management and Internal Control - The board confirmed the effectiveness of the risk management and internal control systems, which are designed to manage, but not eliminate, risks associated with achieving business objectives [114]. - The internal audit team reports directly to the audit committee and the CEO, ensuring oversight of the internal control functions [117]. - The company aims to continuously improve its risk management and internal control systems based on the findings from the annual reviews [114]. Shareholder Communication - Shareholders can submit inquiries to the board in writing or via email, ensuring effective communication between the company and its shareholders [129]. - The company maintained a corporate disclosure policy that includes a framework for shareholder communication, covering aspects such as identifying authorized spokespersons and handling media communications [134].
九兴控股(01836) - 2019 - 年度财报