Financial Performance - The loss attributable to owners of Wong's International Holdings for the year ended December 31, 2020, amounted to HK$761.7 million, compared to a profit of HK$266.3 million in the previous financial year[13]. - Revenue for the year ended December 31, 2020, was HK$3,224.6 million, down from HK$3,781.2 million in the last financial year, representing a decrease of approximately 14.7%[16]. - The operating loss for the year was HK$375.1 million, compared to an operating profit of HK$245.2 million in the previous year, indicating a significant decline in operational performance[16]. - The net loss for the year was HK$761.7 million, a stark contrast to the profit of HK$266.3 million in 2019, reflecting a change of 386.5%[77]. - Total assets decreased to HK$7,585.9 million in 2020 from HK$8,183.2 million in 2019, a reduction of approximately 7.3%[77]. - Total liabilities increased to HK$3,252.2 million in 2020 from HK$3,177.0 million in 2019, marking an increase of about 2.4%[77]. - The return on equity for 2020 was -17.6%, down from 5.3% in 2019, a decline of 22.9 percentage points[62]. - The company's current ratio remained stable at 1.5 times for both 2020 and 2019[74]. - The loss per share for 2020 was HK$1.59, compared to a profit per share of HK$0.56 in 2019[74]. Segment Performance - The EMS Division generated revenue of HK$3,157.2 million, a decrease of 11.3% from HK$3,560.0 million in the last financial year[22]. - The EMS Division's attributable segment profit was HK$132.8 million, down 16.6% from HK$159.2 million in the previous year[22]. - The Property Holding Division reported revenue of HK$67.5 million, a significant drop from HK$221.2 million in the last financial year, primarily due to the previous year's sale of One Harbour Square[22]. - The Property Holding Division incurred a segment loss of HK$780.1 million, compared to a profit of HK$197.9 million in the previous year, driven by a decrease in property values[22]. Dividends - An interim dividend of HK$0.02 per share was paid for 2020, down from HK$0.035 in 2019, with a proposed final dividend of HK$0.02 per share[16]. - The company has adopted a dividend policy to maintain reasonable returns on investment, with the payout ratio based on profit performance[19]. - The company is subject to shareholder approval for the proposed final dividend payment[19]. Banking and Financial Position - As of December 31, 2020, the Group's total banking facilities amounted to HK$3,221.7 million, a decrease from HK$3,311.6 million in 2019[27]. - Total bank borrowings increased to HK$2,038.7 million in 2020 from HK$1,936.2 million in 2019[27]. - Cash and cash equivalents and short-term bank deposits rose to HK$1,419.1 million as of December 31, 2020, compared to HK$1,185.2 million in 2019[27]. - The Group's net bank borrowing decreased to HK$619.6 million in 2020 from HK$751.0 million in 2019[28]. - The net gearing ratio improved to 0.15 in 2020 from 0.16 in 2019[29]. Exchange and Currency Impact - The appreciation of Renminbi in the second half of 2020 resulted in an exchange loss of HK$51.0 million, compared to an exchange gain of HK$9.2 million in the previous financial year[13]. - Gains on currency translation difference of HK$131.4 million in other comprehensive income offset the exchange loss in the consolidated income statement[13]. - The Group incurred an exchange loss of HK$51.0 million due to the appreciation of the Renminbi in the second half of 2020[36]. Market and Operational Strategy - The Group plans to enhance its competitive edge by focusing on customer base expansion, cost control, and value-added services[39]. - The Directors expect the market conditions for commercial properties in Hong Kong to stabilize as the pandemic is gradually brought under control[39]. - The EMS business has established a manufacturing facility in Hai Duong Province, Vietnam, to meet the needs of global customers, with a new site of approximately 17,000 square meters leased for expansion[36]. Shareholder Information - As of December 31, 2020, Mr. Wong Chung Mat, Ben holds 136,828,569 shares, representing approximately 28.60% of the issued shares[142]. - Salop Hong Kong Limited, wholly owned by Mr. Wong Chung Mat, Ben, holds 135,828,569 shares, accounting for approximately 28.39% of the issued shares[149]. - HSBC International Trustee Limited holds 119,307,699 shares, which is about 24.93% of the issued shares[149]. - Wong Chung Ah, Johnny has a beneficial ownership of 90,163,532 shares, representing approximately 18.84% of the issued shares[149]. - Kong King International Limited holds 87,928,532 shares, accounting for approximately 18.38% of the issued shares[149]. Corporate Governance and Compliance - The board of directors has confirmed the independence of all non-executive directors, ensuring compliance with regulatory standards[118]. - The company continues to monitor and comply with the regulations regarding the disclosure of shareholdings[145]. - The Company has maintained directors' and officers' liability insurance throughout the year for legal actions against its directors and officers[183]. Share Option Schemes - The old share option scheme expired on June 2, 2020, and a new share option scheme was adopted on June 26, 2020[157]. - No options were granted under the new share option scheme from its adoption date until December 31, 2020[159]. - The overall limit on the number of shares which may be issued under the New Scheme must not exceed 30% of the shares of the Company in issue from time to time[171].
王氏国际(00099) - 2020 - 年度财报