Financial Performance - The company's revenue for the year was HKD 1,239,276,000, a decrease of 22.2% compared to HKD 1,591,930,000 in the previous year[8] - Gross profit was HKD 726,500,000, down 20.5% from HKD 913,353,000, resulting in a gross margin of 58.6%, an increase of 1.2 percentage points[8] - Operating profit decreased by 52.8% to HKD 165,408,000 from HKD 350,267,000, leading to an operating margin of 13.3%, down 8.7 percentage points[8] - Net profit for the year was HKD 148,286,000, a decline of 51.5% from HKD 306,028,000, with a net profit margin of 12.0%, down 7.2 percentage points[8] - The total revenue for the year was HKD 1,239,276,000, a decrease of approximately 22% compared to last year's HKD 1,591,930,000, with the apparel sales business being the most affected, down about 25%[19] - The overall gross profit for the year was HKD 726,500,000, down about 20% from last year's HKD 913,353,000, resulting in a gross margin of approximately 58.6%, slightly higher than last year's 57.4%[21] - Operating profit for the year was HKD 165,408,000, a decline of about 53% from last year's HKD 350,267,000, with an operating margin of approximately 13%, down from 22% last year[25] - Net profit attributable to the company's owners was HKD 148,286,000, a decrease of about 52% from last year's HKD 306,028,000, with a normalized profit of HKD 195,463,000, down about 24% from last year's HKD 257,415,000[26] Cash and Assets - The company reported cash and bank balances of HKD 1,237,817,000, an increase of approximately HKD 29,816,000 from the previous year[10] - The current ratio stood at 5.4, with current assets of HKD 2,089,945,000 and current liabilities of HKD 388,830,000[10] - Total assets increased to HKD 5,290,467,000 from HKD 5,181,108,000, while total liabilities decreased to HKD 870,229,000 from HKD 957,734,000[8] - The company has no bank loans or overdrafts, resulting in a zero debt-to-equity ratio[10] Inventory and Sales - The average inventory turnover days increased to 152 days from 132 days, while average accounts receivable turnover days increased to 31 days from 27 days[8] - The overall sales for the self-operated retail business decreased by about 18% compared to last year, with total sales amounting to HKD 929,642,000, a decline of approximately 24%[29] - Sales to agents decreased by about 30% compared to last year, significantly impacted by the pandemic[29] - The apparel business sales in Singapore and Malaysia recorded only HKD 34,831,000 for the year, down about 45% from the previous year[32] Costs and Expenses - The total sales cost for the year was HKD 512,776,000, down 24% compared to last year's figures, including direct operating expenses of investment properties which decreased by 15% to HKD 32,137,000[20] - Distribution and marketing costs were HKD 354,888,000, a decrease of 20% from last year's HKD 443,324,000, due to reduced sales-related expenses and the cancellation of various business activities[24] Investment Properties - The company recorded a fair value loss on investment properties of HKD 60,255,000, compared to a fair value gain of HKD 51,518,000 last year[22] - The total value of the investment property portfolio at the end of the year was approximately HKD 2,950,107,000, an increase from HKD 2,900,247,000 at the end of the previous year[34] - The group recorded a fair value loss of HKD 60,255,000 on investment properties, approximately 2% of the total property value at the end of the previous year[34] - The average occupancy rate for the year was about 81%, down from approximately 90% the previous year[36] Property Development - The company has ongoing property development projects with authorized but uncontracted expenditures of HKD 132,000,000 and contracted but unprovided expenditures of HKD 460,006,000[11] - The group has started the construction of the "Jinli Lai Garden" property development project, with expenditures of HKD 424,548,000 incurred by the end of the year[36] - The group continues construction and pre-sale work on the "Jinli Lai Garden" property development project in Meizhou, adjusting each aspect based on actual conditions[39] Environmental, Social, and Governance (ESG) - The company has established a dedicated environmental, social, and governance (ESG) team to formulate strategies and oversee ESG performance[81] - During the reporting period, the company did not identify any non-compliance issues related to bribery, extortion, fraud, or money laundering[82] - The company received over 80 valid feedback responses during the stakeholder engagement process, identifying 19 significant ESG issues[93] - The company adheres to relevant laws and regulations, including the Product Quality Law and Consumer Rights Protection Law, ensuring high product quality and service[96] - The company has implemented a quality management system that complies with government and industry standards, ensuring product safety and quality[97] - The company emphasizes ethical business practices and has a zero-tolerance policy towards corruption[82] - The company actively engages with stakeholders to understand their opinions on ESG management and performance[86] - The company has established a whistleblowing policy to allow employees to report misconduct confidentially[82] Employee and Labor Practices - The group employed a total of 1,688 employees as of December 31, 2020, with a turnover rate of 22%, up from 19% in 2019[114] - The employee composition by gender shows 73% male (1,229) and 27% female, while 98% are full-time employees[114] - Among employees, 76% are aged between 30 to 50 years, while 11% are under 30 and 13% are over 50[114] - The group contributed HKD 24,595,000 to employee retirement funds in 2020, adhering to local regulations[109] - The group has a strict policy against using unauthorized or pirated software in the workplace[103] - The group achieved a training participation rate of 68% among employees in 2020, with 81% for management staff and 66% for general employees[123] - The average training hours for the group in 2020 was 21.8 hours, with management staff receiving an average of 29.3 hours and general employees receiving 21.1 hours[123] - The group reported zero work-related fatalities during the reporting period and a total of 32 days lost due to work-related injuries, down from 68 days in 2019[117] Community Engagement and Support - The company actively participated in community support during the COVID-19 pandemic, providing essential assistance to mitigate its impact[140] - The company donated RMB 500,000 to establish the Jinli Education Scholarship in Meizhou, Guangdong Province, in July 2020[141] - The company provided medical equipment and supplies to hospitals in mainland China, including approximately 120,000 surgical masks and 200 air disinfection machines, in response to the COVID-19 pandemic[141] - A mask factory was established in Meizhou to increase the production of surgical masks to ensure a stable supply for hospitals in mainland China[141] Corporate Governance - The board of directors is committed to maintaining high levels of corporate governance and has complied with the relevant rules and codes[168] - The chairman and CEO positions are held by Mr. Zeng Zhiming, who has over 30 years of experience in the group, enhancing strategic planning and decision-making efficiency[182] - The board consists of six members, including one non-executive director and three independent non-executive directors, ensuring a balanced distribution of power and adequate governance[182] - The nomination committee held two meetings during the year to review the board's size, structure, and composition, including diversity considerations[188] - The company has adopted a nomination policy to regulate the nomination process, considering various factors such as integrity, qualifications, and business experience[186] - The remuneration committee, established in 2005, is responsible for setting transparent procedures for determining the remuneration policy for executive directors and senior management[196] - The remuneration committee held two meetings during the year to review the remuneration of individual executive directors and senior management[200] - All directors confirmed compliance with the relevant provisions of the standard code of conduct during the year[195]
金利来集团(00533) - 2020 - 年度财报