Financial Performance - The company reported a loss attributable to owners of HK$317.6 million for the year 2020, a significant decrease of 12,804.0% compared to a profit of HK$2.5 million in 2019[4]. - The basic loss per share was HK$0.1378, a decline of 12,627.3% from earnings of HK$0.0011 per share in 2019[4]. - The profit attributable to the owners of the Company turned from approximately HK$2,476,000 in 2019 to a loss of approximately HK$317,641,000 in 2020, primarily due to decreased rental income and increased operating expenses[35]. - Rental income from the property leasing business decreased from approximately HK$107,568,000 in 2019 to approximately HK$89,128,000 in 2020, primarily due to a decline in occupancy rate from 90% to 80% at East Gate Plaza[25]. - The Group recorded a loss of approximately HK$667,000 in the change in fair value of financial assets at fair value through profit or loss for Year 2020, with HK$19,146,000 attributable to the NT Trust Scheme[20]. Assets and Liabilities - Total assets increased by 9.4% to HK$11,238.9 million in 2020 from HK$10,273.3 million in 2019[4]. - Cash and bank balances surged by 273.2% to HK$793.5 million in 2020, up from HK$212.6 million in 2019[4]. - The Group's net current assets were approximately HK$3,221,138,000 as of December 31, 2020, up from HK$2,284,982,000 in 2019[90]. - The total cash and bank balances increased significantly from HK$212,568,000 as of December 31, 2019, to HK$793,520,000 as of December 31, 2020[91]. - The total deposits, prepayments, and other receivables increased from approximately HK$192,987,000 as of December 31, 2019, to approximately HK$420,467,000 as of December 31, 2020[60]. Financial Ratios - The current ratio improved to 5.21x in 2020 from 4.50x in 2019, reflecting a 15.8% increase[4]. - The gearing ratio increased to 48.37% in 2020 from 31.79% in 2019, indicating a rise of 52.2%[4]. - Interest coverage ratio fell to 0.48x in 2020 from 1.10x in 2019, reflecting a 143.6% decrease[4]. - The return on capital employed was reported at -4.84%, a significant decline from 0.04% in the previous year[4]. Impact of COVID-19 - The pandemic led to large-scale production cessation and delayed work resumption, significantly impacting the Group's daily operations[10]. - The Group's principal business activities are primarily located in China, which faced severe challenges due to the pandemic[10]. - The Group implemented new prevention and control guidelines for employees to combat the spread of COVID-19, which included regular health checks and travel history assessments[10]. - The Group adjusted its operating goals and plans in response to the pandemic and the downturn of the global economy to mitigate external unfavorable factors[12]. Strategic Initiatives - The Group plans to expedite the disposal of its non-performing assets while exploring opportunities for individual debt restructuring projects in the current market environment[29]. - The Group intends to launch an asset management fund, contingent on the economic environment and the development of COVID-19[18]. - The Group aims to invest in high-quality assets and participate in growth industries to provide long-term returns to shareholders[33]. - The Group is committed to long-term sustainability and prudent management of its business operations[163]. Corporate Governance - The Company complied with all mandatory provisions of the Corporate Governance Code throughout Year 2020, except for one provision regarding the Chairman's attendance at the annual general meeting[186]. - The Board comprises three executive Directors, two non-executive Directors, and three independent non-executive Directors, ensuring independent oversight[192]. - The independent non-executive Directors represent no less than one-third of the Board members, ensuring a balanced governance structure[193]. - The Board has established three standing committees: audit committee, remuneration committee, and nomination committee to assist in governance[200]. Employee Relations - The Group is committed to providing a healthy and safe workplace for all its employees and complies with all applicable health and safety laws and regulations[176]. - The Group values career development and provides ongoing training to its staff according to the needs of the organization[176]. - The overall staff costs for the group amounted to approximately HK$66,788,000 for the year 2020, an increase from HK$60,992,000 in 2019[111]. - The Group emphasizes the importance of employee quality to maintain a competitive market position and seeks to attract and retain talented individuals[176].
银建国际(00171) - 2020 - 年度财报