Financial Performance - The group's total revenue for the year ended December 31, 2020, was HKD 528,495,000, a decrease of approximately 18.7% compared to HKD 650,089,000 in the previous year[11]. - The cement business generated revenue of HKD 334,880,000, down approximately 22.5% year-on-year[11]. - The property investment business recorded revenue of HKD 150,162,000, a slight increase of about 2.1% compared to the previous year[11]. - The hotel business revenue was HKD 31,609,000, reflecting a decline of approximately 44.5% year-on-year[11]. - The group's net profit attributable to shareholders was HKD 61,511,000, down about 49.7% from HKD 122,280,000 in the previous year[11]. - Basic earnings per share were HKD 0.122, compared to HKD 0.242 in 2019[11]. Cement Market Insights - Vietnam's GDP growth rate for 2020 was 2.91%, the lowest in a decade but among the best globally[10]. - Cement sales in Vietnam decreased by approximately 4.3% in 2020 due to the impact of the Covid-19 pandemic[13]. - The group anticipates a recovery in the cement demand in the second half of 2021, driven by a rebound in the real estate market and increased public investment[10]. - The cement plant's sales and profit declined in 2020, with cement and clinker sales at 969,000 tons, down approximately 23.7% from 1,270,000 tons in the previous year[15]. - The after-tax profit for the cement business was HKD 7,332,000, a decrease of about 49.8% compared to HKD 14,606,000 in the previous year[15]. - Vietnam's domestic cement consumption is expected to slowly recover in 2021, driven by a rebound in the real estate market and increased public spending on infrastructure[16]. Environmental Compliance and Initiatives - The company conducts quarterly environmental measurements in accordance with Vietnamese environmental legislation to monitor emissions and pollutants[56]. - The company plans to continue monitoring air quality, noise, and wastewater in compliance with national standards[57]. - The company aims to implement effective technical measures to reduce NOx emissions generated during the clinker burning process[47]. - The cement plant installed a real-time emission monitoring system (CEMS) to comply with environmental regulations, approved for use in August 2020[59]. - The hotel implemented energy-saving measures, achieving 99% LED lighting usage and utilizing high-efficiency water-cooled chillers[70]. - The cement plant's waste heat recovery system is under development, with 90% of the upgrade work completed by the end of 2020[64]. Employee Welfare and Training - As of December 31, 2020, the cement plant employed approximately 967 staff, all of whom received salaries above the local minimum wage[73]. - The cement plant provided training to all 967 employees, focusing on industrial safety practices and technical knowledge, with an average training time of 8-10 hours per employee[80][81]. - The hotel has implemented various training programs to enhance employee skills, including emergency response and occupational safety training[80]. - The youngest employee at the cement plant was 22 years old, ensuring compliance with child labor laws[84]. - The company is committed to providing a safe working environment and has not reported any significant non-compliance with labor laws during the reporting period[85]. Corporate Governance - The group emphasizes high corporate governance standards, adhering to the Hong Kong Stock Exchange's corporate governance code[99]. - The roles of the chairman and CEO are held by the same individual, which deviates from the corporate governance code but is deemed acceptable for business stability[100]. - The board of directors consists of eight members, including the chairperson and five executive directors, with independent non-executive directors serving a one-year term subject to re-election[101]. - The audit committee, composed entirely of independent non-executive directors, held two meetings in 2020, reviewing financial reports and discussing management's analysis of business performance[114][115]. - The company has not faced any claims against its directors and officers during the year, indicating effective risk management[109]. Shareholder Information - The group paid HKD 2,405,000 to Ernst & Young for audit services and HKD 92,500 for tax services for the fiscal year ending December 31, 2020[130]. - The board proposed a final dividend of HKD 0.03 per share to shareholders listed on June 21, 2021, following an interim dividend of HKD 0.02 per share paid on October 16, 2020[141]. - As of December 31, 2020, the company had distributable reserves of approximately HKD 739,336,000, of which HKD 15,077,000 is proposed for the final dividend[152]. - The company has confirmed that at least 25% of its issued share capital is held by the public as of the report date[182]. - The independent auditor's report states that the consolidated financial statements reflect the group's financial position accurately as of December 31, 2020[185]. Investment Properties and Valuation - The total value of investment properties held by the group as of December 31, 2020, is HKD 1,182,000,000[189]. - The hotel business of the company holds properties valued at approximately HKD 549 million as of December 31, 2020[192]. - Management has engaged external valuers to estimate the fair value of hotel properties, which is critical due to the net book amount of HKD 549 million[192]. - The impairment assessment of hotel properties is significant as it relies on estimates such as expected rental rates, projected cash flows, and discount rates[192].
陆氏集团(越南)(00366) - 2020 - 年度财报