Financial Performance - The company's revenue for the fiscal year ended December 31, 2019, was approximately HKD 444.15 million, a decrease of about 33.08% compared to the previous year[7]. - The operating loss for 2019 was approximately HKD 23.85 million, while the operating profit for the previous year was approximately HKD 55.11 million[11]. - The loss attributable to equity shareholders for 2019 was approximately HKD 14.36 million, including a revaluation surplus of investment properties of approximately HKD 51.53 million[11]. - Rental income for the fiscal year was approximately HKD 40.34 million, a decrease of about 21.53% compared to the previous year[16]. - Revenue from toys and model trains for the fiscal year was approximately HKD 403.81 million, a decrease of about 34.05% compared to the previous year[14]. - The group reported a loss attributable to equity shareholders of approximately HKD 14,364,000 for the year, compared to a profit of approximately HKD 181,750,000 in 2018[115]. - No final dividend was recommended for the year ended December 31, 2019, compared to a dividend of HKD 0.01 per share in 2018[116]. - Charitable and other donations for the year totaled approximately HKD 198,000, down from HKD 1,405,000 in 2018[117]. Business Strategy and Operations - The company plans to diversify its business and implement various measures to improve efficiency and strengthen cost control[13]. - The revitalization plan for the Kader Building has been approved by the Hong Kong government, expected to be completed within three years[8]. - The company will continue to explore new sales opportunities and produce high-quality products at competitive prices[15]. - The group plans to diversify its business and enhance production efficiency in response to challenges from the US-China trade tensions and the COVID-19 pandemic[42]. - The revitalization plan for the Kai Tak Building has been approved by the Hong Kong government, expected to be completed within three years, which will increase revenue sources and enhance profitability[42]. - The group has no significant acquisitions or disposals during the fiscal year ending December 31, 2019[39]. - The group has no significant contingent liabilities as of December 31, 2019[40]. Human Resources - The group employed 1,303 full-time employees as of December 31, 2019, a decrease from 1,678 in 2018, with employee costs around HKD 1.8790 billion, down from HKD 2.2036 billion in 2018[41]. - The group emphasizes maintaining long-term trust relationships with employees, customers, and suppliers, focusing on quality products and customer satisfaction[29]. - The group prioritizes employee health and safety, offering competitive compensation and development opportunities to maintain a loyal and innovative workforce[200]. Corporate Governance - The board consists of three executive directors, one non-executive director, and four independent non-executive directors[49]. - The chairman and managing director is Mr. Ding Wushou, who believes that having the same person in both roles leads to strong and unified leadership[50]. - All directors have participated in appropriate continuous professional development activities during the reporting year[55]. - The board held a total of four meetings during the fiscal year, with attendance records indicating full participation from most directors[61]. - The company has established three committees: the remuneration committee, audit committee, and nomination committee to oversee various aspects of the group's affairs[64]. - The board is responsible for formulating and reviewing company policies and corporate governance practices[65]. - The company has updated its insurance policy to provide adequate protection for directors and senior management[56]. - Independent non-executive directors have confirmed their independence annually, meeting the standards set by the listing rules[51]. - The board is tasked with monitoring compliance with legal and regulatory policies and practices[65]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[55]. Audit and Risk Management - The Audit Committee conducted two meetings this year to review interim and annual financial statements, focusing on key accounting policies and risk management[69]. - The Audit Committee monitored the integrity of the group's financial statements, ensuring compliance with accounting standards and relevant regulations[72]. - The Audit Committee reviewed the effectiveness of internal audit functions and ensured adequate resources for risk management and internal controls[73]. - The board believes that the existing risk management and internal control systems are effective and sufficient for the group's operations[95]. - The group has established effective risk management and internal control systems to minimize operational risks, with external internal auditors reviewing their effectiveness[94]. Shareholder Information - As of December 31, 2019, the company's capital structure remained unchanged during the fiscal year[113]. - The group aims to maximize shareholder value while considering the maintenance and increase of dividend levels[100]. - As of December 31, 2019, the company had issued 950,587,991 shares with a par value of HKD 0.10 each[103]. - The group reported an audit service fee of HKD 4,375,000 and a tax service fee of HKD 262,000 for the year ended December 31, 2019[89]. - The total fees for audit and related services provided by KPMG amounted to HKD 4,637,000 for the year ended December 31, 2019[90]. - The company has maintained a public float exceeding 25% of its issued share capital as of the report date[168]. Environmental, Social, and Governance (ESG) - The company has established a comprehensive policy and management system to align its operations with sustainable development[171]. - The company has established an EHS committee led by the factory manager, comprising representatives from various departments to ensure regular internal inspections and meetings[173]. - The company has implemented a quality management system certified by ISO 9001:2015, ensuring systematic quality control throughout the production process[186]. - The company has developed a customer complaint handling procedure to ensure thorough investigation and timely corrective actions, with no complaints recorded in the fiscal year 2019[189]. - The company engages with stakeholders through various channels, including the company website and annual reports, to gather insights on ESG-related risks[175]. - An online survey with 27 rating questions was conducted to identify key ESG issues, covering areas such as environmental protection and labor rights[175]. - The company prioritizes ESG issues into high, medium, and low categories for better strategic planning and resource allocation[183]. - The company emphasizes ethical business practices and compliance with applicable laws to build long-term relationships with customers and suppliers[184]. - The group collaborates with 147 suppliers in the fiscal year 2019, with 73% from Hong Kong, 24% from China, and 3% from other countries[193]. - The group emphasizes compliance with the RBA Code of Conduct for both itself and its suppliers to ensure aligned values[195]. - The group is committed to corporate social responsibility, encouraging employee participation in charitable and volunteer activities[199]. - The group conducts regular supplier performance evaluations to ensure compliance with various ESG-related requirements[193]. - The group has implemented a global safety certification program at its factory to identify and mitigate potential security risks in the supply chain[195]. - The group collects customer information only when necessary and adheres to data privacy laws and regulations[190]. - The group has established a knowledge management manual to protect intellectual property and ensure employee compliance[190]. - The group requires potential suppliers to complete quality system questionnaires and provide compliance certifications[193]. - The group will remove suppliers from its approved list if they fail to improve upon identified non-compliance issues[193].
开达集团(00180) - 2019 - 年度财报