Financial Performance - The loss attributable to owners of the Company for 2018 was approximately HK$49.4 million, a significant decline from a profit of HK$260.2 million in 2017, representing a 119% change [5]. - Basic loss per share for 2018 was 2.14 HK cents, compared to earnings of 11.29 HK cents in 2017, marking a 119% decrease [14]. - The Group recorded a loss of approximately HK$49,375,000 for the year 2018, compared to a profit of approximately HK$260,201,000 in 2017, resulting in a basic loss per share of HK$2.14 [17]. - The significant loss was primarily due to the five-month production suspension of its subsidiary, TZ United East, which led to an increase in losses by approximately HK$373,638,000 [17]. - The profit contribution from Zhong Hai You Qi decreased by approximately HK$185,102,000 due to falling international crude oil prices and inventory impairment losses [17]. Assets and Liabilities - Total assets decreased by 5% to HK$11,345 million in 2018 from HK$11,946 million in 2017 [5]. - Equity attributable to owners of the Company fell by 5% to HK$6,749 million in 2018 from HK$7,103 million in 2017 [5]. - Bank deposits, bank balances, and cash decreased by 42% to HK$860 million in 2018 from HK$1,485 million in 2017 [5]. - The Group's total borrowings amounted to approximately HK$2,923,790,000, with short-term borrowings at HK$1,723.5 million (59%) and long-term borrowings at HK$1,200.3 million (41%) [90]. - The total liabilities of the Group were HK$2,923,790,000, down from HK$3,231,120,000 in the previous year [136]. Operational Performance - The significant increase in operating losses of approximately HK$373.6 million was primarily due to the suspension of production at Taizhou United East Petrochemical Company for five months [15]. - The annual production capacity of TZ United East increased significantly from 110,000 tons to 1,600,000 tons after the completion of the Binjiang Project [33]. - TZ United East processed 582,100 tons of raw materials in 2018, a decrease of 50% from 1,160,900 tons in 2017 [38]. - Revenue from raw materials sold dropped by 82% to HK$6.4 million in 2018, down from HK$34.9 million in 2017 [38]. - TZ United East's subcontracting income fell by 46% to HK$385.9 million in 2018, compared to HK$715.2 million in 2017 [38]. Investment and Development - The Group is actively searching for investment and merger and acquisition opportunities to generate significant profits and cash flows [76]. - The Group invested RMB116,000,000 (approximately HK$129,500,000) for an 8.29% equity interest in Beijing TeraSolar, with RMB58,000,000 (approximately HK$64,700,000) paid as partial payment in 2015 [61][65]. - JC International received an investment of RMB100 million (approximately HK$124.6 million) for a 10% equity interest [56]. - The Group has unutilized banking facilities of approximately HK$317,000,000, indicating potential for future financing [91]. Employee and Management - The Group employed 588 employees at the end of the reporting period, an increase from 559 in the previous year [142]. - Total staff costs for the year increased by approximately 9% to around HK$173,982,000, primarily due to a special bonus of HK$25,000,000 paid to three key staff and redundancy costs of approximately HK$6,300,000 [142]. - The Group emphasizes attracting and retaining talented individuals, providing ongoing training, and offering competitive compensation packages [197]. - The company is committed to attracting and retaining talent in a work environment focused on fairness, mutual respect, and integrity [200]. Market Conditions and Future Outlook - The Board anticipates continued uncertainties in 2019 due to the trade war between China and the United States and Brexit, which may further impact global macroeconomic conditions [20]. - The Group expects to benefit from the future development trend of the Chinese economy, as its business activities are primarily conducted in the China market [21]. Environmental and Safety Practices - The Group is committed to providing a healthy and safe workplace, complying with all applicable health and safety laws and regulations [198]. - Energy-saving measures are enforced in the Group's offices to reduce electricity consumption and greenhouse gas emissions [199]. - The Group has adopted policies to promote recycling and the use of eco-friendly stationery, resulting in more efficient resource use and waste reduction [199].
银建国际(00171) - 2018 - 年度财报