Sales Performance - In the fiscal year 2020, the company's sales remained flat compared to the previous year, primarily due to the implementation of key strategies such as the production of seamless products in Thailand and the continued expansion of capacity in Southeast Asia[13]. - The company experienced a moderate sales growth in the first half of the fiscal year, despite the challenges posed by the US-China trade tensions and the COVID-19 pandemic[12]. - Sales revenue for the year ended June 30, 2020, increased by 1% to HKD 1,237 million, compared to HKD 1,225 million in the previous fiscal year[18]. - The proportion of sales from the US market accounted for 74% of total sales, while Europe accounted for 17% and other markets for 9%[17]. - The largest customer accounted for 33% of total revenue, while the top five customers contributed 85%[86]. Financial Performance - Gross profit decreased from HKD 198.1 million to HKD 180.3 million, with a gross margin decline from 16% to 15% due to increased operational costs and delays in factory expansions[19]. - The company recorded a net loss of HKD 77.5 million for the year ended June 30, 2020, compared to a net loss of HKD 62.8 million in the previous year[24]. - Financial expenses increased from HKD 0.5 million to HKD 5.5 million due to higher borrowing and leasing costs during the pandemic[23]. - The total distributable reserves available for equity shareholders as of June 30, 2020, amounted to HKD 237,116,000, a slight decrease from HKD 238,710,000 in 2019[48]. - The company did not declare a final dividend for the year ending June 30, 2020, consistent with the previous year where no dividend was declared[41]. Operational Challenges - The COVID-19 pandemic severely disrupted global supply chains and economic activities, leading to increased operational costs for the company[12]. - The company took several measures to ensure operational continuity during the pandemic, including remote work arrangements for key staff and cost-cutting initiatives[12]. - The company plans to adopt a cautious approach in response to the uncertain business environment caused by the ongoing pandemic[13]. - The management team emphasized the importance of maintaining operational flexibility, resilience, and innovation in navigating the challenges posed by the global economic changes[13]. - The company expressed gratitude to its board and business partners for their support during the challenging year[14]. Production and Capacity - The company has accelerated the shift of production capacity from China to Southeast Asia, with China's production capacity share decreasing from 35% in FY2018 to 22% in FY2020[17]. - The company’s capital expenditure for the year was approximately HKD 92.7 million, mainly for establishing seamless production facilities and expanding overseas capacity[26]. Governance and Compliance - The company has confirmed the independence of its non-executive directors in compliance with the Hong Kong Stock Exchange listing rules[58]. - The company has established long-term relationships with employees, customers, and suppliers, emphasizing the importance of training and competitive compensation for employees[46]. - The company has not identified any significant non-compliance with relevant laws and regulations that would adversely affect its operations as of June 30, 2020[44]. - The company has a structured approach to risk management, with key risks discussed in the management analysis section of the annual report[40]. - The company has adopted a code of conduct to guide the behavior of directors, management, and employees[161]. Employee and Workforce Management - The total number of employees as of June 30, 2020, was 7,406, with 66% based in China and Hong Kong and 34% overseas[188]. - Employee distribution by age shows 60% are over 30 years old, while 40% are 30 years old and below[189]. - Gender distribution indicates that 90% of employees are male and 10% are female[190]. - The company has established a performance management system to provide fair and systematic evaluations for all employees[199]. - The company has implemented an "Environment, Health, and Safety Policy" to ensure a safe working environment[195]. Corporate Social Responsibility - The company emphasizes a commitment to sustainable production, excellent employer practices, and being a responsible corporate citizen[178]. - The company has achieved gold-level certification from an international social responsibility organization for all major garment factories, ensuring compliance with responsible production principles[200]. - The company prohibits the employment of child labor and forced labor, ensuring that all hiring processes verify the age of applicants[200]. - The company made charitable donations amounting to HKD 66,000 during the year, an increase from HKD 43,000 in the previous year[88]. Risk Management - The company has established a risk management and internal control system to identify, assess, mitigate, report, and monitor risks[139]. - The board is responsible for maintaining an effective risk management and internal control system, with regular reviews conducted by the audit committee[140]. - The Audit Committee reviewed internal control and risk management processes and was satisfied with their overall effectiveness[129]. Future Outlook - The company is optimistic about resuming growth once the pandemic threat is mitigated[14]. - Management remains confident in business development despite ongoing challenges, focusing on business expansion, product diversification, and improving service levels[33]. - The company is focused on expanding its market presence and enhancing product development strategies to drive future growth[99][100].
黛丽斯国际(00333) - 2020 - 年度财报