Financial Performance - The company recorded a loss of approximately HKD 65 million for the fiscal year, compared to a profit of approximately HKD 12 million in the same period last year[24]. - The company’s revenue for the year was approximately HKD 8 million, unchanged from 2018[25]. - Total revenue for the year ended June 30, 2019, was HKD 8,199,000, an increase of 8.7% from HKD 7,542,000 in 2018[193]. - The company reported a loss of HKD 64,812,000 for the year, compared to a profit of HKD 12,022,000 in the previous year, indicating a significant decline in profitability[193]. - Operating expenses increased to HKD 89,900,000 from HKD 57,864,000, reflecting a rise of 55.2% year-over-year[193]. - The total comprehensive loss for the year was HKD 66,527,000, compared to a comprehensive income of HKD 13,682,000 in 2018[193]. - Basic loss per share was HKD 4.05, a decrease from earnings of HKD 1.17 per share in the previous year[193]. Assets and Liabilities - As of June 30, 2019, the company’s current assets net amounted to approximately HKD 97 million, with a current ratio of 1.60[32]. - The company’s total liabilities were approximately HKD 173 million, including bank borrowings of approximately HKD 103 million[32]. - Non-current assets totaled HKD 918,801,000, a slight increase from HKD 905,005,000 in 2018[195]. - Current assets decreased to HKD 257,183,000 from HKD 339,492,000, a decline of 24.2%[195]. - Total liabilities decreased to HKD 160,557,000 from HKD 184,321,000, indicating a reduction of 12.9%[195]. - The company's net assets amounted to HKD 1,002,997,000, down from HKD 1,056,836,000 in the previous year[197]. - The company’s equity attributable to owners was HKD 1,012,531,000, a decrease from HKD 1,060,171,000 in 2018[197]. Corporate Governance - The board of directors recommended not to declare a final dividend for the year[38]. - The board consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring a diverse range of expertise in management, property market, electronics, accounting, and corporate development[50]. - The company has complied with all provisions of the corporate governance code as per the Hong Kong Stock Exchange, with some deviations disclosed in the report[47]. - The chairman and CEO roles are separated, with Dr. Weng serving as both chairman and acting CEO, ensuring strong leadership and effective business planning[56]. - Independent non-executive directors are selected based on required skills and experience, with at least one possessing appropriate professional qualifications or relevant financial management expertise[53]. - The company reviews its corporate governance practices regularly to ensure compliance with the code[48]. - All independent non-executive directors confirmed their independence in writing, meeting the independence criteria set by the listing rules[53]. - The company has adopted a standard code of conduct for securities transactions by directors, confirming compliance for the year ended June 30, 2019[49]. - The board has established a nomination committee to review the structure, number, and composition of the board, and to identify suitable candidates for board membership[58]. - The nomination committee held one meeting during the year ending June 30, 2019, to review the board's structure and assess the independence of non-executive directors[63]. - The audit committee held two meetings during the year to review the company's financial statements and internal control systems[70]. - Non-executive directors are subject to re-election every three years, ensuring accountability and governance[57]. Environmental, Social, and Governance (ESG) Practices - The board is responsible for the company's environmental, social, and governance (ESG) strategy and reporting, including the assessment of related risks[89]. - The company reported nitrogen oxides (NOX) emissions of 5.6 kg for the year ended June 30, 2019, compared to 5.5 kg in the previous year, indicating a slight increase[92]. - Sulfur oxides (SOX) emissions were recorded at 0.2 kg for the year ended June 30, 2019, up from 0.1 kg in the previous year[92]. - Greenhouse gas emissions for the year ended June 30, 2019, totaled 178 tons of CO2 equivalent, an increase of 35.9% from 131 tons in 2018[95]. - The company has implemented various energy-saving measures to reduce emissions, including promoting green office actions and encouraging the use of video conferencing[99]. - The company has maintained a low level of harmless waste, with measures in place to reduce paper usage and promote recycling[100]. - The company has not reported any significant non-compliance issues with environmental laws and regulations for the year ended June 30, 2019[90]. - The company emphasizes a safe and healthy work environment, with no reported work-related injuries or fatalities for the year ended June 30, 2019[111]. - The company has not reported any significant violations of labor practices or health and safety regulations for the year ended June 30, 2019[108][109]. - Employee training and development programs are in place to enhance the skills and knowledge of employees, contributing to their value as assets[112]. Shareholder Information - As of June 30, 2019, the total number of shares held by the directors and their associates in the company amounted to 55,497,189 shares, representing 3.86% of the total equity[144]. - Major shareholders include Basurto Holdings Limited and Cityguard Holdings Limited, each holding 508,848,531 shares, which accounts for 35.37% of the total equity[148]. - Gold Seal Holdings Limited holds 309,388,211 shares and 228,605,681 convertible securities, totaling 537,993,892 shares, representing 37.39% of the total equity[148]. - The total equity held by all major shareholders amounts to 1,176,614,613 shares, which is 81.78% of the total equity[148]. - The company has a significant concentration of ownership, with the top five shareholders holding over 81% of the total equity[148]. - The ownership structure indicates a strong control by a few entities, which may impact corporate governance and decision-making processes[149]. Internal Controls and Audit - The audit report confirms that the consolidated financial statements fairly present the group's financial position as of June 30, 2019, in accordance with Hong Kong Financial Reporting Standards[176]. - The audit committee consists of one non-executive director and three independent non-executive directors, ensuring effective internal control reviews and oversight of financial reporting[167]. - The company appointed a new auditor, RSM Hong Kong, effective February 26, 2019, to fill the vacancy left by Deloitte[172]. - The company has established internal controls to prevent material misstatements in financial reporting due to fraud or error[183]. - The audit committee assists the board in overseeing the financial reporting process, ensuring compliance with relevant regulations and standards[184]. - The independent auditor's report emphasizes the importance of key audit matters, particularly the valuation of investment properties, which requires significant management judgment[178]. Future Plans and Investments - The company expects to achieve sales of USD 100 million in the technology department by 2024[27]. - The company plans to utilize HKD 7,800,000 for land acquisition and HKD 39,000,000 for facility construction within the next two years[165]. - The company has not reported any new strategies or product developments in the provided documents[145]. - There are no indications of market expansion or acquisitions mentioned in the financial reports[145].
PALADIN(00495) - 2019 - 年度财报