Financial Performance - The company reported a net loss attributable to equity holders of HKD 689 million for the year ended December 31, 2020, compared to a net loss of HKD 141 million in 2019, primarily due to a significant decrease in revenue and non-cash items [5]. - In 2020, the company's revenue from continuing operations was HKD 505 million, a decrease of HKD 501 million or 49.8% compared to 2019 [37]. - The total loss for the year was HKD 696 million, compared to a loss of HKD 141 million in 2019, reflecting a 393.6% increase in losses [37]. - The operating loss from the property investment and holding segment was HKD 84 million in 2020, down from an operating profit of HKD 32 million in 2019, mainly due to unrealized fair value losses [43]. - The Ferrari agency business recorded revenue of HKD 413 million in 2020, a decline of 32.6% compared to the previous year, resulting in an operating loss of HKD 22 million [44]. - The antique car trading and logistics business generated revenue of HKD 26 million in 2020, a significant decrease of 75% from HKD 104 million in 2019, leading to an operating loss of HKD 9 million [45]. - The stage sound, lighting, and engineering business reported revenue of HKD 20 million in 2020, a decrease of 89.6% from HKD 192 million in 2019, resulting in an operating loss of HKD 49 million [47]. - Revenue from other businesses decreased by 57.3% to HKD 35 million in 2020, with an operating loss of HKD 25 million, a reduction of 52.8% compared to 2019 [48]. - The company’s property development and trading segment did not generate any revenue in 2020 due to reclassification of properties [43]. Dividend Policy - The company did not recommend a final dividend for 2020, maintaining cash reserves to address future challenges, with no interim dividend declared for 2020 [6]. - The group reported a loss for the year ended December 31, 2020, with no final dividend proposed due to the challenging environment, maintaining cash reserves for future difficulties [126]. - The company did not declare any interim dividends in 2020, consistent with 2019 [126]. - The ability to pay dividends is subject to the board's discretion and must consider the group's financial performance and overall financial condition [122]. - The company adopted a dividend policy in January 2019, allowing for the declaration and distribution of dividends to shareholders [121]. Market Conditions - The property market in Hong Kong experienced a decline in prices and transaction volumes due to the COVID-19 pandemic, but the company remains optimistic about a rebound as the situation improves [7]. - The company anticipates growth potential in the Xinjiang region under the "Belt and Road" initiative, despite the challenges faced in 2020 [10]. - The antique car and investment-grade automobile market remains cautiously optimistic for long-term development despite the impact of the COVID-19 pandemic [16]. - The company anticipates a rebound in core business once the COVID-19 pandemic is under control, despite facing unprecedented challenges [26]. Business Operations - The company terminated its joint venture in mainland China in November 2020 due to losses incurred from the pandemic and uncertainties regarding future management and operations [10]. - The company's securities business recorded an overall operating loss of HKD 1 million, with no dividends or income received from its holdings in GBA shares during the year [12]. - Blackbird Group, the company's automotive division, successfully launched three new Ferrari models in 2020, including the F8 Spider and 812 GTS, marking significant milestones in their dealership operations [13][14]. - The logistics business performed well with good operating profit margins, and the company established its own car recall service center [17]. - The company has a diversified property portfolio, including luxury villas and retail properties, which has appreciated significantly over the years [9]. - The company is focused on cash preservation and cost-saving measures to prepare for future recovery opportunities [26]. Corporate Governance - The company has a diversified management team with over 43 years of financial and accounting management experience, focusing on corporate finance and mergers and acquisitions [31]. - The independent directors bring a wealth of experience from various industries, enhancing corporate governance and oversight [33][34]. - The company has maintained a high level of corporate governance to maximize shareholder benefits [76]. - The board consists of six members, including one female and three independent non-executive directors, ensuring sufficient diversity [109]. - The board has established three committees: the remuneration committee, audit committee, and nomination committee, each with clearly defined responsibilities [91]. - The company has established a remuneration committee, which held one meeting in the fiscal year ending December 31, 2020, to review and provide recommendations on the remuneration policies for directors and senior management [92][93]. Risk Management - Major risks identified include the COVID-19 outbreak, the ongoing trade war between China and the U.S., and significant changes in government policies affecting operations [116]. - The company has implemented measures to mitigate identified risks, which may change according to business and external environment [117]. - The board has reviewed the risk management and internal control systems for the fiscal year ending December 31, 2020, and deemed them effective and adequate [116]. Employee Relations - The company has a competitive compensation package for employees, including pension and benefits, and encourages training and development [70]. - The company made charitable donations of approximately HKD 140,000 in 2020 and encourages employees to participate in community service activities [71]. - The company has implemented various measures during the COVID-19 pandemic to ensure a safe working environment for employees, including remote work and flexible hours [70]. Financial Position - The capital debt ratio increased from 38.2% in 2019 to 44.8% in 2020, primarily due to a decrease in bank borrowings and shareholders' equity [52]. - Current ratio improved to 260.6% in 2020 from 224.9% in 2019, indicating higher liquidity [54]. - Cash balance at year-end was HKD 48 million, down HKD 23 million from HKD 71 million in the previous year [54]. - Total borrowings amounted to HKD 1,734 million, with approximately 81.8% being long-term borrowings [52]. Share Options and Equity - The company issued HKD 250.2 million of 2024 convertible bonds, with a coupon rate of 5% per annum, and the conversion price set at HKD 0.72 per share [129]. - The total number of share options granted under the GBA 2011 plan is 16,134,993,990, with 10,914,993,990 shares remaining unexercised as of December 31, 2020 [156]. - The total number of shares held by employees under the GBA plan is 1,320,000,000 shares, with no options exercised during the year [156]. - The company’s total issued shares as of December 31, 2020, is 873,111,452 shares, which is the basis for calculating the percentage of equity held by directors and executives [160].
中建富通(00138) - 2020 - 年度财报