Financial Performance - The company's operating revenue from freight and chartering decreased by 25% to HKD 367,523,000 compared to HKD 492,645,000 in 2019[28]. - The net loss attributable to shareholders for 2020 was HKD 85,840,000, compared to a net loss of HKD 3,450,000 in 2019[28]. - The basic loss per share for the year was HKD 0.162, compared to HKD 0.007 in 2019[28]. - The increase in shipping-related expenses was a significant factor contributing to the net loss in 2020[28]. - The company's operating revenue decreased by 25% to HKD 367,523,000 in 2020 from HKD 492,645,000 in 2019[46]. - The average daily charter rate for owned vessels fell by 24% to USD 7,269 (approximately HKD 57,000) in 2020 compared to USD 9,533 (approximately HKD 74,000) in 2019[46]. - Daily operating costs for vessels slightly decreased by 2% to USD 3,851 (approximately HKD 30,000) in 2020 from USD 3,927 (approximately HKD 31,000) in 2019[46]. - Daily financial costs for vessels dropped by 41% to USD 242 (approximately HKD 2,000) in 2020 from USD 412 (approximately HKD 3,000) in 2019[46]. - The net loss for the year amounted to HKD (138,553,000) in 2020 compared to a profit of HKD 12,085,000 in 2019[54]. - Total comprehensive loss for the year was HKD (124,720,000) in 2020, down from a profit of HKD 4,470,000 in 2019[54]. - Non-current assets decreased to HKD 2,264,529,000 in 2020 from HKD 2,435,596,000 in 2019[56]. - Current assets decreased to HKD 844,997,000 in 2020 from HKD 1,008,892,000 in 2019[56]. - The company's capital debt ratio was 19% in 2020, slightly up from 18% in 2019[56]. - The group's freight income for the year was HKD 16,288,000, with total operating income from freight and chartering decreasing by 25% to HKD 367,523,000 compared to HKD 492,645,000 in 2019[166]. - Other operating income decreased from HKD 66,845,000 in 2019 to HKD 54,040,000 in 2020, primarily due to reduced dividend income from equity securities investments[167]. - Interest income increased to HKD 38,807,000 in 2020 from HKD 29,707,000 in 2019, attributed to stable interest income from receivable loans[167]. - Financial costs decreased to HKD 28,045,000 in 2020 from HKD 38,583,000 in 2019, mainly due to lower interest rates and reduced secured bank loans[170]. - The group's cash and cash equivalents decreased to HKD 603,541,000 as of December 31, 2020, from HKD 808,308,000 in 2019[175]. - The company recorded a significant unrealized fair value loss of approximately HKD 41 million on financial assets during the market sell-off triggered by COVID-19[185]. Operational Overview - The company maintains sufficient operating cash and current assets to meet its financial obligations, including principal and interest payments[28]. - The global shipping trade began to recover in the second half of 2020, driven by strong demand for iron ore imports in China[27]. - The company will continue to monitor the developments of the COVID-19 pandemic and its impact on business operations[29]. - The company expects economic activities to gradually recover in 2021[29]. - The company maintains a fleet of 19 owned vessels, employing 395 crew members, with a total deadweight tonnage of 1,136,333 tons[38]. - The fleet primarily consists of modern Supramax and Ultramax vessels, which are increasingly in demand globally[34]. - The average utilization rate of the fleet decreased from 99% in 2019 to 98% in 2020[162]. - The group owned a total of 19 vessels as of December 31, 2020, including 2 Panamax and 17 Supramax vessels[163]. - The company has no new shipbuilding contracts and will focus on maintaining a solid financial position and prudent measures[34]. - The company has implemented policies to ensure compliance with applicable safety and environmental regulations[147]. - The company has not executed any significant acquisitions or disposals of vessels other than those disclosed in the report for the year 2020[194]. - The company is exposed to various operational risks, including fluctuations in shipping market rates and changes in demand and supply in the dry bulk market[199]. - The company continues to adopt a flexible chartering policy to manage business risks associated with the shipping market[199]. Governance and Management - The board of directors consists of seven members, including four executive directors and three independent non-executive directors[66]. - The chairman and the managing director are brothers, with the chairman responsible for strategic planning and overall operations oversight[63]. - All directors attended 100% of the board meetings held in 2020, with the chairman attending 7 out of 7 meetings[61]. - The company has established appropriate insurance arrangements for its directors and senior management against legal claims arising from corporate activities[61]. - The board meets at least four times a year to discuss the company's business and operational status[61]. - The company complies with listing rules requiring at least three independent non-executive directors, with one possessing relevant financial expertise[67]. - The board's structure allows for a balance of skills and experience relevant to the company's business[66]. - The chairman ensures that all directors receive timely and reliable information for board meetings[64]. - The board will regularly review its effectiveness and the allocation of responsibilities to improve overall shareholder interests[64]. - Independent non-executive directors have confirmed their independence annually in accordance with listing rules[67]. - The nomination committee, established on January 1, 2013, currently consists of three independent non-executive directors and is responsible for reviewing the board's structure and composition[74]. - The board currently comprises seven members, with six male and one female, reflecting the company's commitment to gender equality[74]. - The company has a policy for board diversity, considering factors such as gender, age, cultural background, and professional experience[74]. - The board is responsible for formulating and implementing risk reduction strategies, including appropriate insurance coverage[77]. - The company has established strict internal policies regarding the handling and dissemination of insider information[94]. - The audit committee was established on September 22, 1998, and consists of three independent non-executive directors[94]. - The audit committee held four meetings in 2020 to review the group's accounting principles and practices, as well as financial reporting matters[95]. - The board of directors has delegated management functions to the management team, including executive directors and senior management[97]. - The company is committed to maintaining effective communication with shareholders, particularly through annual general meetings[102]. - The company will hold its 2021 annual general meeting on May 25, 2021, with a notice to be published at least 20 business days prior[102]. Environmental and Social Responsibility - The company is committed to maintaining high environmental awareness and operating its vessels in an environmentally friendly manner[116]. - The board is responsible for the company's environmental, social, and governance (ESG) strategies and reporting, ensuring compliance with applicable regulations[115]. - The company has adopted a strategy to monitor environmental regulations closely to ensure compliance in its operations[116]. - The company has established a risk management and internal control system for ESG performance, with annual reporting to the board[115]. - The average Energy Efficiency Operational Indicator (EEOI) for the fleet in 2020 was approximately 12.5 grams of CO2 per ton-mile, an increase of 12.6% compared to 11.1 grams in 2019[121]. - Fuel consumption in 2020 was 69,621 tons, a decrease of approximately 26.7% from 95,034 tons in 2019, while CO2 emissions dropped to 216,682 tons, down 27.0% from 296,663 tons in 2019[122]. - The company aims to reduce the EEOI by 2% in 2021 compared to the 2020 figure, focusing on better fuel management and reducing empty voyages[121]. - The implementation of the Ship Energy Efficiency Management Plan (SEEMP) has been in place since February 2013, contributing to reduced fuel consumption and carbon emissions[126]. - The company has adopted low-sulfur fuel compliant with the IMO 2020 global sulfur limit since January 2020, transitioning to 0.5% low-sulfur fuel oil[130]. - The fleet's total CO2 emissions were lower in 2020 due to shorter sailing times and increased idle time related to COVID-19 pandemic disruptions[123]. - The company has reported negligible and harmless waste generation from its vessels, with no significant harmful waste indicators applicable[125]. - Daily water consumption per vessel is approximately 7 tons, with total freshwater consumption decreasing from 54,000 tons in 2019 to 46,000 tons in 2020, a reduction of about 14.8%[132]. - The company supports environmentally friendly practices and encourages employee participation in sustainability initiatives[141]. - The company emphasizes compliance with environmental regulations and has obtained safety management certificates from recognized authorities[135]. - The company is committed to monitoring climate change impacts and does not foresee significant immediate threats to operations[140]. Employee Relations - The company has maintained a stable workforce of 67 employees since 2019, with a low employee turnover rate[142]. - Gender distribution among employees is 36 males and 31 females, with the board consisting of six males and one female[142]. - The company provides additional benefits to employees, including medical and life insurance, retirement plans, and various paid leave options[144]. - The company emphasizes maintaining a healthy and safe working environment for both onshore and offshore staff[197]. - The company maintains good relationships with its employees and has not experienced any operational disruptions due to industrial disputes[196]. - The company encourages employee participation in environmental protection initiatives as part of its corporate culture[149].
金辉集团(00137) - 2020 - 年度财报