Financial Performance - The company reported a loss of approximately HKD 165,597,000 for the fiscal year ending December 31, 2018[33]. - Total revenue for the year 2018 was HKD 340,415,000, a decrease of 39.2% from HKD 559,443,000 in 2017[58]. - The net loss attributable to shareholders was approximately HKD 133,800,000, compared to HKD 98,500,000 in 2017[62]. - The company's accumulated losses increased to HKD 885,430,000 in 2018 from HKD 687,687,000 in 2017[178]. - The company did not recommend the payment of a final dividend for the years ended December 31, 2018, and December 31, 2017[175]. Corporate Governance - The company has adopted corporate governance standards and confirmed compliance with the Hong Kong Stock Exchange's corporate governance code throughout the year[11]. - The board consists of nine members, including five executive directors and four independent non-executive directors[15]. - The company has implemented a board diversity policy aimed at enhancing board efficiency and corporate governance[16]. - The independent non-executive directors confirmed their independence in accordance with listing rules, ensuring independent judgment in board decisions[16]. - The company is in the process of identifying suitable candidates to fill the vacant chairman and CEO positions[14]. Operational Challenges - The PCB business continued to decline due to a lack of capital for updating equipment and machinery in key operational areas[8]. - The company implemented cost-saving measures and quality improvements to overcome challenges in the PCB sector[8]. - The company is actively seeking new sales orders through strategic pricing policies and aggressive marketing efforts[8]. - The company is in discussions with business partners to explore new projects and opportunities[8]. Environmental, Social, and Governance (ESG) Initiatives - The group has established an Environmental, Social, and Governance (ESG) working group to assess and report on ESG risks and performance[82]. - The group is committed to sustainable development as a core part of its business strategy, believing it is key to future success[81]. - The total greenhouse gas emissions for the reporting period amounted to 19,840.55 tons of CO2 equivalent, with a reduction of approximately 3,266.94 tons compared to 2017[104]. - The company has established an environmental management system certified to ISO 14001:2015, focusing on compliance with environmental laws and regulations[97]. - The company has implemented measures to reduce vehicle exhaust emissions, resulting in nitrogen oxides (NOx) emissions of 431.88 kg, sulfur oxides (SOx) at 1.10 kg, and particulate matter (PM) at 29.66 kg for the reporting period[102]. Board and Management Structure - The company held 10 board meetings during the year, with attendance records indicating full participation from several directors[17]. - The remuneration committee, composed of three independent non-executive directors, held one meeting during the year to review the remuneration policies[27]. - The company provides appropriate liability insurance for directors, reviewed annually to cover risks associated with company affairs[23]. - The company ensures that directors receive ongoing training and updates on regulatory developments to fulfill their responsibilities[19]. - The company has established a compliance committee to oversee regulatory compliance and internal control matters since November 5, 2015[196]. Revenue Breakdown - Single-sided PCB revenue was HKD 102,556,000, accounting for 30.1% of total revenue, down 4.5% from HKD 107,433,000 in 2017[58]. - Double-sided PCB revenue increased by 60.8% to HKD 159,371,000, representing 46.8% of total revenue[58]. - Multi-layer PCB revenue dropped by 72.2% to HKD 44,185,000, contributing 13.0% to total revenue[58]. - Revenue from bridge tower and cable trading was HKD 34,303,000, a significant decline of 82.3% from HKD 193,832,000 in 2017[58]. - Revenue from the Chinese market decreased by 46.0% to HKD 230,180,000, representing 67.6% of total revenue[60]. Employee and Labor Practices - The company maintains a 100% labor contract signing rate with employees, ensuring compliance with labor laws and regulations[134]. - The company emphasizes the importance of a diverse workforce to enhance overall competitiveness, implementing structured recruitment and promotion processes[137]. - The company prioritizes employee health and safety, with no recorded incidents leading to severe injuries or fatalities during the reporting period[141]. - The company provides annual health check-ups and various insurance policies to support employee well-being[143]. - The company strictly prohibits the employment of child labor and forced labor in its operations, adhering to relevant laws and regulations[149]. Internal Controls and Compliance - The company has implemented new internal control procedures covering various aspects including investment decisions, risk management, and financial reporting[35]. - The internal audit report has been reviewed and discussed by the audit committee, with management accepting all relevant recommendations[37]. - The compliance committee is responsible for overseeing the group's adherence to relevant laws and regulations[30]. - The company has implemented new internal control procedures to prevent future non-compliance incidents, including hiring a full-time compliance officer and internal auditor[196]. - The company’s board is now aware of the correct thresholds for related party transactions under listing rules, ensuring compliance moving forward[194].
中华银科技(00515) - 2018 - 年度财报