Financial Performance - The company's revenue increased by approximately 14% to around HKD 162,041,000 for the year ended December 31, 2020, compared to HKD 141,936,000 in 2019[11]. - The loss attributable to the company's owners for the year was approximately HKD 15,801,000, a significant improvement from a loss of HKD 55,038,000 in 2019[11]. - Revenue from toy products increased by about 19% to approximately HKD 152,115,000, accounting for about 94% of total revenue[12]. - The segment loss for novelty and decorative products decreased to approximately HKD 4,247,000, down from HKD 3,377,000 in 2019, with revenue declining by about 28% to HKD 9,926,000[13]. - The core business recorded a profit of approximately HKD 13,111,000, a turnaround from a loss of HKD 26,831,000 in 2019[11]. - The company reported that the top five customers accounted for approximately 98% of total revenue, with the largest customer contributing about 87%[187]. - The top five suppliers represented around 42% of total purchase value, with the largest supplier accounting for 17%[187]. Cost Management - Distribution costs decreased by approximately 16% to about HKD 3,066,000, while administrative expenses fell by about 36% to approximately HKD 52,009,000[14]. - Financial expenses increased by about 20% to approximately HKD 2,632,000 due to increased interest on amounts payable to subsidiary company directors[15]. - The company is committed to optimizing its product portfolio to meet customer needs and improve operational efficiency while implementing strict cost control measures[36]. Financial Position - As of December 31, 2020, the company's bank balance and cash amounted to approximately HKD 59,467,000, down from HKD 70,403,000 in 2019[18]. - The company's debt-to-equity ratio was approximately 26%, a decrease from 44% in the previous year[18]. - The company has sufficient financial resources to meet its obligations and working capital needs, with total current assets of approximately HKD 182,437,000[18]. - As of December 31, 2020, the net asset value per share was approximately HKD 0.33, down from HKD 0.37 on December 31, 2019, with total equity attributable to owners of approximately HKD 106,423,000[19]. - The company has no distributable reserves as of December 31, 2020, but has a share premium account of approximately HKD 118,895,000 available for distribution as scrip dividends[193]. Strategic Initiatives - The company is in discussions to acquire over 50% equity in Sozak Oil and Gas JSC, which is engaged in oil and gas exploration in Kazakhstan, with the payment structure involving cash and issuance of new shares[26]. - The company entered into a strategic cooperation agreement with California Super Computing Network Technology, Inc. and Affluence Energy Holding SARL to leverage energy reserves and technology for digital currency projects[28]. - The company aims to integrate resources in the blockchain and cryptocurrency sectors through its strategic agreements, focusing on areas such as mining, trading, and investment management[32]. - The company aims to become a leading global digital currency enterprise in the blockchain and cryptocurrency sector, focusing on a full ecosystem layout including mining, trading, and investment management[36]. - The company will continue to seek quality acquisition opportunities in the oil and gas development sector to enhance its resource integration capabilities[36]. Corporate Governance - The company has adopted the corporate governance code as per the latest amendments in Appendix 14 of the Listing Rules, effective from August 29, 2013, with further revisions made on December 20, 2018[53]. - The board of directors consists of five members, all experienced professionals, responsible for setting the overall business development goals and long-term strategies of the company[59]. - The company has complied with the corporate governance code except for the separation of roles between the chairman and the CEO, which is currently shared among the board members and the company secretary[54]. - The independent non-executive directors constitute at least one-third of the board, ensuring high standards of financial and mandatory reporting[63]. - The company has established a remuneration committee and an audit committee to enhance corporate governance standards[53]. Risk Management - The company has established and maintained an effective risk management and internal control system, with no significant risks identified as of December 31, 2020[161][163]. - The internal control system is based on the COSO 2013 framework, which aims to achieve operational effectiveness, reliability of financial reporting, and compliance with applicable laws and regulations[163]. - The audit committee is responsible for monitoring the risk management and internal control systems and ensuring effective communication with the board regarding identified risks and remedial plans[162]. Shareholder Relations - The board will continue to ensure transparency and timely disclosure of company information, including annual and interim reports[178]. - The board has delegated decision-making responsibilities for daily operations and administrative matters to management[96]. - The board has established strict guidelines for employee conduct regarding securities trading to prevent insider trading[93]. Employee and Board Composition - The group employed approximately 700 full-time employees as of December 31, 2020, an increase from 680 in 2019[24]. - The board has established a nomination committee to provide a framework for appointing capable directors to achieve sustainable development[82]. - The nomination committee will ensure the selection process is transparent and fair[122].
PERFECTECH INTL(00765) - 2020 - 年度财报