Financial Performance - The overall revenue of the Group increased by approximately 22.9% from approximately HK$539,557,000 in the year ended 30 September 2017 to approximately HK$663,036,000 in the year ended 30 September 2018[8]. - The net profit for the year ended 30 September 2018 amounted to approximately HK$40,311,000, compared to a net loss of approximately HK$20,279,000 for the year ended 30 September 2017[8]. - The Board has recommended a final dividend of HK2.6 cents per share for the year ended 30 September 2018, an increase from HK2.1 cents in 2017[8]. - The gross profit margin decreased from approximately 34.1% in the year ended 30 September 2017 to approximately 29.2% in the year ended 30 September 2018, primarily due to rising petrochemical material costs[10]. - Selling and distribution costs rose by approximately 7.8% from approximately HK$56,149,000 in the year ended 30 September 2017 to approximately HK$60,520,000 in the year ended 30 September 2018[10]. Business Strategy and Expansion - The Group plans to expand its manufacturing facilities in Vietnam to meet market demand[12]. - The Group has established technology cooperation agreements with experts from Japan, Taiwan, and Hong Kong to enhance its research and development capabilities[14]. - The Board expects steady sales growth in 2019 due to increasing global demand for footwear and environmental friendly adhesive products[16]. - The Group will consider investing in and developing its OEM business to broaden its revenue base[18]. - The Group will actively consider investing and developing its OEM business to broaden its revenue base[19]. Economic Outlook and Risks - The anticipated increase in interest rates and oil price volatility are expected to pose risks to the global economy in 2019[17]. - The global economic outlook remains optimistic, with expectations of slight growth despite risks from the US-China trade war and emerging market issues[19]. - The Group will adopt a cautious approach to ensure continuous and effective business development amid global economic uncertainties[21]. Financial Position and Ratios - The Group's total interest-bearing bank borrowings increased from approximately HK$27,164,000 as of September 30, 2017, to approximately HK$36,654,000 as of September 30, 2018[21]. - The gearing ratio as of September 30, 2018, was approximately 9.4%, up from approximately 6.9% as of September 30, 2017[21]. - The current ratio as of September 30, 2018, was approximately 2.2, compared to approximately 2.8 as of September 30, 2017[21]. - The Group's restricted bank deposits decreased from approximately HK$17,430,000 as of September 30, 2017, to approximately HK$12,980,000 as of September 30, 2018[21]. Corporate Governance - The Board is committed to high standards of corporate governance and has complied with all applicable code provisions as set out in the Corporate Governance Code[39]. - The Board consists of seven members, including four executive Directors and three independent non-executive Directors, ensuring a balance of relevant skills and experience[42][43]. - The Audit Committee held two meetings during the year ended 30 September 2018 to review the Group's results for the year and the six months ended 31 March 2018, recommending both to the Board for approval[55]. - The Nomination Committee held one meeting during the year ended 30 September 2018 to review the composition of the Board and the independence of the independent non-executive Directors[63]. - The Board believes that the current structure of having the same individual as chairman and chief executive officer provides strong and consistent leadership for the Group[53]. Environmental and Social Responsibility - The Group aims to provide environmental, social, and economic benefits to stakeholders as part of its sustainable development efforts[94]. - The environmental, social, and governance report for the year ended 30 September 2018 is prepared in accordance with the relevant reporting guide[94]. - The Group's greenhouse gas emissions totaled 3,082 tCO2e for the year ended September 30, 2018, with an intensity of 0.15 tCO2e per ton of adhesives produced[105]. - The Group's environmental management system was accredited with ISO 14001:2015[99]. - The Group plans to phase out diesel forklifts in favor of electric ones to enhance sustainability[109]. Employee and Workplace Safety - The Group employed a total of 365 employees as of 30 September 2018, down from 375 employees as of 30 September 2017[23]. - The Group's employment system includes performance evaluation and training, ensuring equal opportunities and a diverse working environment[135]. - The Group has established safety policies and conducts regular safety inspections to mitigate health and safety risks in the workplace[149]. - During the year ended September 30, 2018, there were no occurrences of any fatal accidents[159]. - The Group provides protective equipment to employees to ensure safety during manufacturing processes[149]. Community Engagement - The Group emphasizes the importance of community investment, contributing to education in impoverished areas since 2006 through donations and voluntary work[177]. - The Group has been actively involved in community investment, particularly in education in impoverished areas, contributing to the construction of "Youxin Peimiao Ding'an Primary School" since 2006[179]. - The Group plans to develop a community investment policy to provide more specific management guidelines and measures for employees[179]. Management Team - Mr. Ieong Un, the founder and CEO, has approximately 30 years of experience in the adhesive industry, focusing on strategic planning and product R&D[181]. - Mr. Ip Chin Wing, the deputy general manager, assists in formulating business strategies and has a background in managing operations since joining the Group in 2001[182]. - Mr. Ip Ka Lun oversees treasury and administrative functions, bringing 30 years of experience in accounting and finance to the Group[186]. - Mr. Stephen Graham Prince is responsible for sales and marketing, having joined the Group in 2005 with prior experience in project management and operational strategy[187]. - The Group's management team consists of experienced professionals with extensive backgrounds in their respective fields, enhancing the Group's operational capabilities[181][182][186][187].
星谦发展(00640) - 2018 - 年度财报