Operations and Market Position - The group operates approximately 1,352 non-franchised public buses and 354 luxury cars as of March 31, 2020[28]. - The group has positioned itself as the largest non-franchised public bus and luxury car operator in Hong Kong[28]. - The acquisition of 100% of the shares of various companies has strengthened the group's market position in the cross-border bus service sector[30]. - The group has developed a network of six 24-hour cross-border shuttle bus routes since 2004[30]. - The group acquired 100% of the shares of Youlian Tour Bus Group and Huikang Tour Bus Company in 2016 and 2018, respectively, further consolidating its position in the non-franchised bus market[31]. - The group has a strong presence in school bus, tourism, hotel, and employee bus services, operating daily routes from the New Territories to Hong Kong Island[29]. - The group has expanded its operations to include cross-border routes connecting Shenzhen Bay and the Hong Kong-Zhuhai-Macao Bridge[29]. - The group has a significant market share in the local and cross-border bus services, enhancing its competitive edge[31]. - The group has established a robust operational framework through its subsidiaries, ensuring efficient service delivery across various transport sectors[29]. Financial Performance - Total revenue for the year ended March 31, 2020, was HKD 2,463,264,000, a decrease of 17.1% from HKD 2,971,865,000 in the previous year[43]. - The annual profit for the year was HKD 22,417,000, down 91.4% from HKD 259,360,000 in the previous year[43]. - Revenue from cross-border services between Mainland China and Hong Kong was HKD 1,011,842,000, a decline of 30.3% from HKD 1,451,653,000 in the previous year[43]. - Local service revenue increased to HKD 838,083,000, up 4.4% from HKD 804,192,000 in the previous year[43]. - The fleet size for non-franchised buses was 1,352 vehicles, a slight decrease from 1,376 vehicles in the previous year[43]. - The consolidated profit for the year was approximately HKD 22,000,000, a decrease of about 91.5% compared to last year's profit of approximately HKD 259,000,000[63]. - The significant decline in net profit was primarily due to social events and the outbreak of COVID-19, which led to a substantial drop in visitor numbers to Hong Kong[67]. - The company implemented various cost control measures, including salary reductions for senior management and staff, encouraging unpaid leave, and postponing the replacement of new buses[67]. - The company received subsidies from the Hong Kong government's anti-epidemic fund, which partially offset the decline in net profit[67]. - The board did not recommend a final dividend for the year ending March 31, 2020, compared to a dividend of HKD 0.16 per share in 2019[64]. - The company has suspended certain operating ticketing centers and cross-border bus routes as part of its cost control measures[67]. Management and Governance - The company has over 40 years of experience in the bus operations sector, with the current chairman leading the board[45]. - The CEO, who joined the company in 2011, is responsible for daily management and operations, holding degrees in mathematics and economics[46]. - The CFO has been with the company since 2004 and oversees daily management and operations, with a background in accounting and finance[47]. - The COO, appointed in 2014, is responsible for daily management and operational units, holding a PhD in law and a bachelor's degree in economics[52]. - The board includes independent non-executive directors with extensive experience in law, finance, and corporate governance[49][50]. - The management team is committed to expanding the company's market presence and exploring new business opportunities[53]. - The company has received various accolades, including honors for its management team members, reflecting its commitment to excellence in the industry[52]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding independent directors[93]. - The company regularly conducts performance evaluations for employees, with discretionary year-end bonuses and stock options awarded based on group performance and individual contributions[82]. - The board confirmed its responsibility for the effectiveness of risk management and internal control systems, aiming to manage risks rather than eliminate them[127]. Environmental and Social Responsibility - The company is committed to maintaining effective communication with shareholders, particularly through annual general meetings and other shareholder meetings[133]. - The company aims to enhance its corporate social responsibility and comply with relevant laws and regulations[148]. - The company has a commitment to resource conservation and recycling, aiming to further enhance its social and environmental responsibilities[160]. - The group has achieved ISO39001 certification for road traffic safety management, making it the first transport company in Hong Kong to receive this certification[170]. - The group has been actively involved in community investment, including partnerships with NGOs and charitable organizations for fundraising and public service activities[175]. - The group emphasizes employee training and development, providing regular onboarding and in-service training to enhance overall work quality[169]. - The group has implemented a comprehensive safety training program for drivers, focusing on defensive driving techniques and emergency procedures[166]. - The group has a zero-accident vision and continuously reviews safety measures to enhance service quality[170]. - The group collaborates closely with suppliers to ensure compliance with local environmental, business, and labor laws[171]. Future Outlook and Strategic Initiatives - The company is optimistic about future growth due to the implementation of the Greater Bay Area and Belt and Road initiatives[37]. - The group anticipates that revenue will improve as cross-border traffic gradually resumes, depending on government quarantine and testing policies[72]. - The group expects the Greater Bay Area to become a preferred destination for Chinese travelers once travel restrictions are lifted, benefiting cross-border operations[72]. - The group is taking a cautious approach to mitigate adverse impacts on operations and will implement appropriate measures as needed[72]. Financial Management and Risk - The group adopts a prudent financing and financial management policy to minimize financial risks, relying on internal cash flow, bank credit, or other financing methods available in Hong Kong and/or mainland China for major investment projects[81]. - The group closely monitors the exchange rate between the Hong Kong dollar and the Chinese yuan, planning to hedge any significant foreign exchange risks when necessary[81]. - The group’s borrowings are primarily at floating interest rates, and appropriate measures, including several hedging tools, are taken to minimize interest rate risks[81]. - The internal audit department is responsible for establishing the internal control framework, covering all significant controls including financial, operational, and compliance controls[131].
冠忠巴士集团(00306) - 2020 - 年度财报