Financial Performance - The company recorded revenue of RMB 72 million for the fiscal year, a decrease of approximately 12% from RMB 82 million in the previous fiscal year[12]. - Gross profit was RMB 24 million, with a gross margin of 34%, down from RMB 28 million in the previous year[12]. - Operating loss for the fiscal year was RMB 14 million, compared to a loss of RMB 53 million in the previous year[12]. - Administrative expenses decreased by 9% to RMB 55 million due to reduced sales volume and revenue[12]. - Sales and distribution expenses fell from RMB 13 million to RMB 8 million as a result of the decline in sales volume and revenue[12]. - The company reported a gross profit margin of 35%, reflecting improved operational efficiency and cost management strategies[171]. - The company reported a reserve available for distribution to shareholders of RMB 643,435,000 as of June 30, 2020, down from RMB 652,703,000 in 2019[195]. - The company did not recommend the distribution of dividends for the fiscal year ending June 30, 2020, consistent with the previous year[194]. Corporate Governance - The company adhered to the Corporate Governance Code as per the Hong Kong Stock Exchange rules for the fiscal year ending June 30, 2020, with some deviations noted in the report[30]. - The board of directors held a total of six meetings during the fiscal year, with all members attending at least 83.33% of the meetings[38]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee relevant matters[35]. - The Remuneration Committee convened once during the fiscal year to review and propose remuneration policies for executive directors and senior management[43]. - All independent non-executive directors confirmed their independence according to the relevant rules, ensuring effective governance[34]. - The board consists of a balanced mix of executive and non-executive directors, including independent non-executive directors, to enhance independent judgment[32]. - The company is committed to continuous professional development for its directors, with all participating in training and seminars related to regulatory updates and industry management[40]. - The company’s governance practices will be reviewed regularly to ensure compliance with the latest regulations[30]. - The board is responsible for maintaining and improving overall shareholder interests and has established a robust internal control system[36]. - The company has established a formal risk assessment system to identify potential risks affecting key business processes annually[67]. - The internal audit department, led by the internal audit manager, is responsible for reviewing the company's major business operations and assisting in the continuous development of internal control policies[68]. - The board of directors is responsible for monitoring the effectiveness of the group's risk management and internal control systems, with annual reviews conducted[69]. Environmental, Social, and Governance (ESG) Initiatives - The group has established effective management policies and monitoring systems for environmental, social, and governance (ESG) matters during the reporting period[94]. - The group operates wholesale trade and distribution of agricultural products without any production bases or farming operations[89]. - The group emphasizes stakeholder engagement, maintaining close communication with key stakeholders to enhance sustainable development performance[91]. - The group has implemented environmental management systems to regulate greenhouse gas emissions and waste generated from operations in Hong Kong and mainland China[97]. - The group is committed to complying with relevant environmental laws and regulations, with no significant violations reported during the reporting period[97]. - The group has a dedicated ESG working group responsible for identifying and assessing ESG risks and evaluating the effectiveness of internal control mechanisms[85]. - The group aims to expand its disclosure scope as data collection systems mature and sustainable development efforts deepen[89]. - The group has developed a matrix to assess the importance of various ESG issues, highlighting key areas such as product quality and safety, waste management, and energy management[93]. - The company's sulfur oxides (SOX) emissions decreased from 0.82 kg in 2019 to 0.53 kg in 2020, representing a reduction of approximately 35.4%[99]. - Nitrogen oxides (NOX) emissions dropped significantly from 309.87 kg in 2019 to 142.05 kg in 2020, a decrease of about 54.4%[99]. - The total greenhouse gas emissions (Scope 1 and 2) reduced from 680.26 tons CO2 equivalent in 2019 to 509.23 tons CO2 equivalent in 2020, reflecting a decline of approximately 25.1%[102]. - The total amount of non-hazardous waste generated was 531.67 tons in 2020, down from 596.1 tons in 2019, indicating a reduction of approximately 10.8%[106]. - The company has implemented measures to reduce fuel consumption and carbon emissions through regular vehicle maintenance and compliance with regional emission policies[100]. - The company emphasizes energy-saving measures, increasing employee awareness of energy conservation through initiatives like posting energy-saving slogans[110]. - The company maintains a green work environment by regularly monitoring indoor air quality and installing air purification systems[114]. Employee and Labor Practices - The group employed 170 staff as of June 30, 2020, down from 190 in 2019[28]. - The company achieved a 100% labor contract signing rate with employees in mainland China[118]. - Employee turnover rate was 16% in Fuzhou and 17% in Hong Kong[125]. - The male employee turnover rate was 18%, while the female rate was 15%[125]. - The company has not recorded any work-related fatalities or serious injuries during the reporting period[126]. - The company emphasizes employee health and safety, adhering to relevant laws and regulations[126]. - Various training programs are implemented to enhance employee skills and support sustainable development[131]. - The training system includes pre-job training, on-the-job training, and professional training[134]. - The company organizes recreational activities to promote work-life balance among employees[129]. - The company has taken measures to ensure employee health during the COVID-19 pandemic, including increased cleaning and mask requirements[129]. - The company strictly prohibits the employment of child labor and forced labor in its operations in mainland China and Hong Kong, ensuring compliance with relevant laws and regulations[136]. Community Engagement and Philanthropy - The company actively participates in community investment and social responsibility initiatives, including scholarships and support for underprivileged students[156]. - The company donated RMB 200,000 to the Nanjing Agricultural University Education Development Foundation to support its development projects[157]. - The company encourages employees to engage in social welfare activities, enhancing their sense of social responsibility[158]. - The company has established a charity foundation to manage its philanthropic efforts and ensure compliance with relevant laws[157]. - The company plans to increase its support for public welfare through donations and organizing charitable events in the future[157]. Strategic Outlook and Future Plans - The company has set a future outlook with a revenue growth target of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[171]. - New product development includes the introduction of three innovative agricultural technologies aimed at improving crop yield and sustainability, expected to launch in Q2 2021[171]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[171]. - A strategic acquisition of a local agricultural firm is in progress, which is anticipated to enhance the company's supply chain efficiency and product offerings[171]. - The company has allocated HKD 100 million for research and development in the upcoming fiscal year, focusing on sustainable farming practices and technology integration[171]. - The management team emphasized the importance of digital transformation, with plans to invest in digital marketing and e-commerce platforms to enhance customer engagement[171].
超大现代(00682) - 2020 - 年度财报