Financial Performance - The Group's revenue for the year ended December 31, 2020, decreased to approximately HK$101.13 million, a decline of approximately 45.28% compared to HK$184.81 million in 2019[16]. - Gross profit decreased by approximately HK$8.89 million to approximately HK$42.27 million, while the gross profit margin increased from approximately 27.68% in 2019 to approximately 41.80% in 2020[16]. - The loss for the year was approximately HK$106.15 million, compared to a loss of approximately HK$95.09 million in 2019, primarily due to an increase in net impairment of financial assets from approximately HK$20.92 million in 2019 to approximately HK$63.53 million in 2020[16]. - The proportion of revenue from the money lending business increased from 12.41% in 2019 to 24.81% in 2020, contributing to the higher gross profit margin[16]. - The group's revenue decreased to approximately HK$101,130,000 in 2020, a decline of about 45.28% compared to HK$184,810,000 in 2019[18]. - Gross profit fell by approximately HK$8,890,000 to about HK$42,270,000 in 2020, representing a decrease of approximately 17.38% from HK$51,160,000 in 2019[18]. - The loss for the year was approximately HK$106,150,000, compared to a loss of about HK$95,090,000 in 2019, indicating an increase in loss[18]. - Net impairment loss on financial assets increased from approximately HK$20,920,000 in 2019 to about HK$63,530,000 in 2020[18]. Revenue Breakdown - Income from the manufacturing of electronics products accounted for approximately 54.39% of total revenue in 2020, down from 71.35% in 2019[36]. - Interest income from money lending services rose to 24.81% of total revenue in 2020, up from 12.41% in 2019[36]. - Revenue from the manufacturing of electronics products decreased by 58.29% to approximately HK$55,005,000 in 2020 compared to HK$131,861,000 in 2019[37]. - Revenue from nursery education services dropped by 75.35% to approximately HK$1,756,000 in 2020, down from HK$7,124,000 in 2019[38]. - Revenue from electronic product manufacturing decreased by 58.29% to approximately HK$55,005,000 compared to HK$131,861,000 in 2019[41]. - Revenue from money lending services increased by 9.43% to approximately HK$25,095,000 compared to HK$22,933,000 in 2019[43]. - Revenue from regulated financial services decreased by 27.21% to approximately HK$8,042,000 compared to HK$11,048,000 in 2019[45]. - Revenue from early childhood education services decreased by 75.35% to approximately HK$1,756,000 compared to HK$7,124,000 in 2019[42]. Assets and Liabilities - Total assets as of December 31, 2020, were HK$1,360.94 million, a slight decrease from HK$1,389.72 million in 2019[13]. - Total liabilities increased to HK$802.36 million in 2020 from HK$772.76 million in 2019[13]. - Net assets decreased to HK$558.58 million in 2020 from HK$616.96 million in 2019[13]. - As of December 31, 2020, the Group's cash and cash equivalents were approximately HK$11,598,000, down from HK$26,088,000 in 2019[51]. - The Group's interest-bearing borrowings were approximately HK$498,952,000, a decrease from HK$502,549,000 in 2019[52]. - The gearing ratio of the Group increased to 0.87 from 0.77 in 2019, indicating a higher level of debt relative to equity[52]. - The net asset value of the Group as of December 31, 2020, was approximately HK$558,580,000, down from HK$616,964,000 in 2019[53]. Employee and Management Costs - The total staff costs incurred for 2020 were approximately HK$29,983,000, a decrease from approximately HK$40,818,000 in 2019[59]. - As of December 31, 2020, the group had approximately 250 employees, a decrease from about 300 employees in 2019, with total employee costs amounting to approximately HKD 29,983,000 in 2020, down from HKD 40,818,000 in 2019[62]. - Executive Directors waived part of their salaries, amounting to approximately HK$6,438,000 and HK$5,238,000 respectively, during the year[109]. Corporate Governance and Shareholder Information - The Company is a diversified investment holding company, with principal subsidiaries' activities detailed in the consolidated financial statements[77]. - The Directors' report includes audited consolidated financial statements for the year ended December 31, 2020[76]. - The Company has adopted all code provisions in the Corporate Governance Code and complied with applicable provisions throughout the year[188]. - The Board comprises five Directors, including two executive Directors and three independent non-executive Directors[190]. - Each independent non-executive director confirmed their independence in accordance with Rule 3.13 of the Listing Rules[200]. - The Company maintained a public float of not less than 25% of its issued shares as required under the Listing Rules[134]. - The Company did not purchase, sell, or redeem any of its listed securities during the year[144]. Dividend Policy - The Group did not recommend the payment of a final dividend for the year ended December 31, 2020, consistent with 2019, where no dividend was declared[78]. - The Company adopted a Dividend Policy on January 21, 2019, which considers financial results, prospects, and other factors when declaring dividends[79]. - The Company had no distributable reserves available for distribution to shareholders as of December 31, 2020[87]. - The Company does not have a pre-determined dividend distribution ratio, and the Board has discretion over dividend declarations[83]. Bond Issuance and Financial Strategy - The company issued bonds amounting to HK$300 million on December 29, 2017, with an interest rate of 8% per annum, to support funding needs for various operations[88]. - The company plans to use the bond proceeds for funding its debt business, capital expenditures in early childhood education, and general working capital[94]. - The company has extended the maturity date of the bonds to accommodate its financial strategy[96]. - The company is required to redeem HK$10,000,000 of the bonds by December 28, 2020, and a minimum of HK$20,000,000 by June 28, 2021[97]. - The interest rate on the bonds was increased from 8% to 10% per annum, and the final maturity date was extended to June 28, 2022[97]. - As of December 31, 2020, the outstanding principal amount of the bonds was HK$260,000,000 after partial repayments of HK$40,000,000[96]. Risk Management - The group did not engage in any derivative activities or undertake any financial instruments to hedge its financial risk as of December 31, 2020[61]. - The group has pledged equity interests in several subsidiaries as collateral for bonds issued on December 29, 2017[60]. - The group has pledged office properties and restricted bank deposits to secure loans[60]. Events After Reporting Period - There are no significant events requiring disclosure that occurred after December 31, 2020, up to the date of the report[156][160].
先机企业集团(00176) - 2020 - 年度财报